The JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Pakistan Kuwait Investment Company (Pvt) Limited (PKIC) ratings of AAA (Triple A) for medium to long-term and short-term rating of A-1+ (A One Plus).
The outlook on the medium to long-term rating is 'stable'.
The reaffirmation is based on continuing implied support for the two sovereign joint venture partners as well as the exceptional level of capitalisation and liquidity enjoyed by the company.
Consistently, high profitability has helped bolster the equity base albeit the major contribution to profitability came from non-core volatile sources.
To mitigate the increased market risk, the company has earmarked reserves to absorb erosion in equity investments, and will make dedicated efforts to deploy more funds in the core, mark-up-based assets to balance the asset mix and increase sustainable profits.
The JCR-VIS would actively monitor progress in this regard, especially as the company was not able to achieve its current year's projected core portfolio size.