PACRA has maintained the long-term and short-term ratings of PakLibya Holding Company (Pvt) Limited (PLHC) at "AA-" (Double A minus) and "A1+" (A one Plus), respectively. The rating of the Privately Placed Term Finance Certificate of PKR 750m is maintained at "AA" (Double A).
The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect the joint ownership of PLHC by the Governments of Pakistan and Libya. The company has lately reverted to profits, despite sizeable provisioning on its equity portfolio.
Meanwhile, the company is strengthening its system and controls and management structure, which are beneficial to its prospects. However, recent classification of certain loans requires management's attention. A detailed business plan has been operationalized and is beginning to show results; however, its sustainability would be challenging in a highly competitive and adverse economic environment.-PR
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