Press Release
VIS Reaffirms Entity Ratings of Saudi Pak Industrial and Agricultural Investment Company Limited
Lahore, June 24, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Saudi Pak Industrial and Agricultural Investment Company Limited at ‘AAA/A1+’ (Triple A/A One Plus). Medium to long term rating of 'AAA' indicates highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short term rating of 'A1+' indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on June 28, 2025.
The assigned ratings to Saudi Pak Industrial and Agricultural Investment Company reflect its strong ownership structure, with equal shareholding by the Governments of Pakistan and the Kingdom of Saudi Arabia, providing a high degree of sovereign linkage and support. The ratings continue to draw strength from the Kingdom of Saudi Arabia’s strong sovereign credit profile, with S&P reaffirming the Kingdom’s long-term sovereign rating at ‘A+’ in March 2026. Governance indicators remain sound, supported by balanced board representation from both sponsors and oversight through established board committees.
During CY25, Saudi Pak Industrial and Agricultural Investment Company undertook a significant balance sheet rebalancing, reducing investment-led treasury operations and increasing focus on core lending activities. While the asset base contracted following the winding down of spread-based transactions, advances registered strong growth and outpaced industry trends, continuing into Q1. The rest of the year is likely to witness cautious growth. The credit portfolio remains concentrated in a number of sectors and obligors and asset quality indicators improved, supported by lower non-performing loans, strong provisioning coverage and manageable stress-testing outcomes under adverse geopolitical scenarios.
Profitability strengthened during CY25, driven by higher net markup income arising from lower funding costs and improved spreads despite a decline in gross markup income. Operating efficiency also improved, while capitalization remained strong, supported by internal capital generation, high capital adequacy levels and substantial buffers above regulatory requirements.
The Saudi Pak Industrial and Agricultural Investment Company’s investment portfolio continues to be conservatively structured, with a significant proportion invested in Federal Government Securities. Liquidity indicators remain adequate, supported by compliance with regulatory liquidity requirements and access to secured funding sources, although the funding profile remains predominantly borrowings-based.
The ratings also incorporate Saudi Pak Industrial and Agricultural Investment Company’s continued focus on technology modernization, digitalization and operational resilience through upgrades to core systems, cybersecurity infrastructure and enterprise platforms. Going forward, the ratings will remain dependent on Saudi Pak Industrial and Agricultural Investment Company’s ability to sustain asset quality, profitability and capitalization metrics while maintaining prudent risk management practices and further expanding its core development finance activities
For further information on this ratings announcement, please contact at 042-35723411-13 or email at info@vis.com.pk.
Applicable Rating Criteria:
Government Supported Entities
https://docs.vis.com.pk/Methodologies-2025/GSEntities.pdf
Financial Institution
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf