The Pakistan Credit Rating Agency (Pacra) has assigned the long-term and short-term entity ratings of 'AA-' (Double A Minus) and 'A1+' (A One Plus) respectively to Pak China Investment Company Limited (PCICL). These ratings denote a very low expectation of credit risk emanating from the highest capacity for timely payment of financial commitments.
The ratings reflect the joint ownership of PCICL by the governments of Pakistan and China, implying strong support to the company. At the same time, the ratings reflect the sound risk absorption capacity of the company, an outcome of a robust capital structure and a prudent stance towards risk.
The company is in the process of developing the key management team and building the requisite infrastructure before actively pursuing its business plans. The identified business lines though similar to other Development Finance Institutions (DFIs), include a greater focus on facilitating trade-flows between the two countries and supporting Chinese companies in Pakistan. However, the management's success in carving out a distinctive niche in the increasingly competitive operating environment remains to be seen.-PR
Comments
Comments are closed.