JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at 'AAA/A-1+' (Triple A/A-One Plus). Outlook on the ratings is 'Stable'. PKIC is a joint venture between Government of Pakistan represented by State Bank of Pakistan and Government of Kuwait represented through Kuwait Investment Authority.
The rating also considers the sovereign ratings of 'AA-/Stable/A-l +' assigned to the State of Kuwait by a global credit rating agency. Notable growth was observed in the company's lending portfolio during FYI0, following subdued activity in core business operations till mid 2009.
Future business direction for 2011 appears to point towards enhancement in corporate and investment banking activity. Focus on equities investments reduced over the last two years and funds were redirected towards investment in fixed income avenues, including lending operations. The equities portfolio comprises blue chip scrips, as second-tier investments were offloaded.
PK1C's portfolio of strategic investments and associated concerns includes progressively growing institutions, which may become a sizable source of revenues in the foreseeable future. Ratings also derive strength from the significant value of the company's investment in the county's largest Islamic bank.-PR
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