VIS reaffirms ratings of Saudi Pak Industrial and Agricultural Investment Company

VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Saudi Pak Industrial and Agricultural Investment Company Limited (Saudi Pak) at 'AA+/A-1+' (Double A Plus/A-One Plus).
The medium to long-term rating of 'AA+' denotes high credit quality, with strong protection factors. Moreover, risk factors are modest but may vary slightly with possible changes in the economy. The short-term rating of'A-1+' denotes highest certainty of timely payment, liquidity factors are outstanding and safety is just below risk free short-term obligations of Government of Pakistan. Outlook on the assigned rating is 'Stable'. The previous rating action was announced on June 12, 2018.
Ratings assigned to Saudi Pak take into account its strong shareholders' profile, with two sovereigns, Government of Pakistan and Kingdom of Saudi Arabia (KSA), having an equal stake in the company under the terms of a joint venture agreement. KSA has outstanding ratings of 'A-/A-2' from an international credit rating agency.
As consistent with the company's moderate risk appetite, disbursements are mainly targeted towards mid-tier companies. Moreover, in the backdrop of prevalent economic conditions, the company has adopted a conservative approach in making disbursements against the set targets.-PR