The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term entity ratings of Pakistan Mobile Communications Limited (PMCL) "A+" (Single A Plus) and "A1" (A One), respectively. The ratings of the TFC issues of rupees 3.261 million and rupees 6,000 million have also been maintained at "A+" (Single A Plus). These ratings denote a strong capacity of finely payment of financial commitments. Meanwhile, these ratings have been assigned a positive outlook.
The ratings reflect PMCL's strong business profile emanating from its leading market position, largest operational network, improving margins, and rising subscriber base. The company has largely achieved desired network coverage, limiting historically high CAPEX levels to up-gradation activities. This has benefited PMCL's financial profile by directing free cashflows to reduce debt obligations. The company's cashflow needs may go up significantly if it acquires 3G license. Although the company maintains strong cash flows, its short-term coverage's are relatively modest.-PR
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