Press Release
JCR-VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Company Limited at CGR-9
Karachi, October 10, 2013: JCR-VIS Credit Rating Co. Ltd. has reaffirmed the Corporate Governance Rating of Pak Oman Investment Company Limited (POIC) at ‘CGR-9’.
Corporate governance ratings are based on an evaluation of key governance areas of the rated enterprise, which include regulatory compliance; ownership structure; composition and operations of the board of directors and executive management; self-regulation; financial transparency and relationship with stakeholders.
Corporate governance practices at POIC are viewed in context of the shareholders’ agreement which requires equal representation of both sponsors on the company’s Board. In view of this, it is not possible to achieve compliance with certain provisions of the revised Code of Corporate Governance, which relate to composition of Board and its committees. Performance self-evaluation mechanism for the board is expected to be put in place by 2014.
As such, governance practices at the company are considered sound. A conservative outlook from the Board level has translated into limited growth in recent years, as has generally been the case in the financial sector. Oversight of strategic investments may be improved further. Corporate and financial disclosures provided by the company are considered adequate and largely in line with industry practices.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (sobia@jcrvis.com.pk /ext: 604) at 35311861-70 or fax to 35311872-3.
Javed Callea
Advisor