Press Release
VIS Reaffirms Entity Ratings of Pakistan Telecommunication Company Limited
Karachi, March 06, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Pakistan Telecommunication Company Limited (PTCL) at "AAA/A1+" (Triple A/ A1 plus). The medium to long-term rating of 'AAA' denotes highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. The short-term rating of 'A1+' denotes strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. The previous rating action was announced on January 10, 2025.
Pakistan Telecommunication Company Limited (PTCL), initially a state-owned entity, was incorporated as a public limited company on December 31, 1995 taking over the telecommunication business from Pakistan Telecommunication Corporation (PTC) as per the Pakistan Telecommunication (Re-organization) Act 1996. Listed on the Pakistan Stock Exchange Limited (PSX) with headquarter in Islamabad, PTCL provides a wide range of telecommunication services across Pakistan, including Azad Jammu and Kashmir and Gilgit Baltistan. PTCL also has wholly owned subsidiaries, which include Pak Telecom Mobile Limited (PTML) and U-Microfinance Bank Limited & Telenor Pakistan (Private) Limited. PTCL on December 31, 2025, has successfully concluded the acquisition of Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited and has acquired 100% of the shareholding of Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.
The assigned ratings reflect PTCL’s strong sponsor profile, anchored by majority ownership of the Government of Pakistan and continued strategic involvement of Etisalat Group through a significant equity stake and management control. The ratings also factor in the relatively low business risk of the telecom sector, supported by non-cyclical demand, high capital intensity, regulatory oversight, and structural barriers to entry. As the country’s leading integrated ICT provider, PTCL maintains the largest fixed-line network and a strong presence across broadband, enterprise connectivity, and ICT solutions.
The Company’s financial profile shows higher leverage and moderated coverage following debt-funded capex and financial support to subsidiaries; however, strong operating scale, improving cash flow generation, and access to diversified funding sources provide meaningful financial flexibility. Liquidity remains robust, supported by established banking relationships, refinancing capacity, and expected recovery of cash flows from associated entities. Going forward, disciplined financial management, successful integration of acquisitions, and continued expansion will remain key to sustaining growth and supporting ratings.
For further information on this ratings announcement, please contact 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Industrial Corporates.
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf