The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Pak Libya Holding Company (Private) Limited at AA- (Double A minus) and A1+ (A one plus), respectively. Ratings of PPTFCs of Rs 750 million and Rs 1,000 million have been 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 sovereign parentage - jointly owned by Governments of Pakistan and Libya. The company's performance improved as revenues increased mainly owing to higher other operating income.
The management is confident on achieving success in materialisation of efforts that supports earning profile of the company and overcome numerous internal as well as external challenges. PLHC, has a well-conceived strategy in action, that aims at improving performance while building asset side - mainly credit and investment portfolio. The ratings assigned by PACRA draw comfort from cohesiveness in the management team and improving technological and operational framework.
The Company has not only maintained the pace of profitability but also accelerated it subsequent to disclosure of the results for FY 2014 which turned out to be the best year for Pak-Libya since 2008, owing to a marked increase in prudent and selective business activity over the previous year. The net profit before tax jumped from Rs 196 million in 2013 to Rs 318 million in 2014 - a major achievement despite facing numerous constraints along the way.-PR
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