JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long-term entity rating of Pakistan Security Printing Corporation (Pvt) Ltd (PSPC) at 'AAA' (Triple A) with a outlook. Short-term rating has also been reaffirmed at 'A-1+' (A-One Plus).
Ratings derive comfort from the sovereign ownership structure of PSPC besides its strategic importance, being the country's sole printer and supplier of local currency notes to the State Bank of Pakistan (SBP). Financial risk profile of PSPC is also very strong, emanating from a low leverage capital structure and healthy cash flows. With the completion of major BMR during the last few years and installation of advanced technology, PSPC is now geared to meet growth in demand, while also having the capability to incorporate highly advanced security features in its production processes.
The corporation has no major CAPEX planned over the near to medium term and the projected recurring CAPEX can be comfortably met from internal sources. In addition to holding a marketable investment portfolio generating healthy return, PSPC's strategic investments are also generating dividend income and contributing to cash flows.-PR