The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the long-term entity rating of Pak China Investment Company Limited (PCICL) to 'AA' (Double A) [previous: AA-]. The short-term rating is maintained at 'A1+' (A One plus), which is already at the highest level on the respective scale. 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 sovereign parentage - jointly owned by Governments of Pakistan and China, implying strong sponsors' support. The management with a well conceived strategy aims to improve business profile of the company through conservative growth in risk-based lending while strengthening risk management framework and improving technology infrastructure. The company's assets registered significant growth, mainly fuelled by the company's enhanced - indeed active - participation in the money market.
Moreover, to finance targeted growth in earning assets, the company is pursuing diversification in funding base. Good asset quality and strong risk absorption capacity provide strength to PCICL's financial profile. PCICL's ratings are dependent on the management's ability to sustain growth momentum while managing the associated risks. At the same time, upholding governance standards remain important.-PR
Comments
Comments are closed.