Press Release

VIS Revises Sukuk and Entity Ratings of Hascol Petroleum Limited

Karachi, March 30, 2020: VIS Credit Rating Company Ltd. (VIS) has assigned a ‘D’ rating (Defaulted Obligation) to the six year privately placed sukuk of Rs. 2bn, issued by Hascol Petroleum Limited (HPL) on account of non-payment of an installment due. The sukuk were issued in 2015 and had so far been serviced without delay (15 out of 20 payments has been made successfully). The Sukuk previously carried a rating of ‘BBB-’ with ‘Negative outlook’.

Sukuk rating was based on the instrument carrying a debt servicing mechanism to progressively retain upcoming installment in an escrow account under a trustee arrangement, which mechanism has apparently faltered.

As per September’20 accounts, HPL’s equity stood at negative Rs. 33.3 billion (excluding revaluation surplus). On account of this, and above mentioned instrument default, the debt repayment capacity of the company has substantially eroded. Accordingly, ratings have been revised to ‘CC/C’ (Double C/Single C) with ‘Negative outlook’ from ‘BB+/A-3’ (BB Plus/A-Three). Long term rating of ‘CC’ signifies high default risk and short term rating of ‘C’ signifies doubtful capacity for timely payment of obligations. Last ratings were announced on April 17, 2020.

For further information on this rating announcement, please contact the undersigned (Ext: 306) or Mr. Arsal Ayub (Ext: 216) at (021)35311861-70. Email for further info at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria:
Oil & Gas Industry (April 2019)
Industrial Corporates (June 2019)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited