Press Release
VIS Reaffirms Entity Ratings of Pak Telecom Mobile Limited (PTML)
Karachi, May 08, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Pak Telecom Mobile Limited (‘PTML’ or ‘the Company’) at ‘AA-/A1’ (Double A Minus/A One). Medium to long term rating of 'AA-' indicates high credit quality with strong protection factors. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of 'A1' suggests strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on January 27, 2025.
Pak Telecom Mobile Limited (PTML), operating under the Ufone brand, commenced commercial operations in January 2001 and provides mobile voice and data services across Pakistan. PTML is a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) and operates under licenses issued by the Pakistan Telecommunication Authority. In December 2025, PTCL completed the acquisition of Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited, with Telenor Pakistan continuing to operate as a separate legal entity during the ongoing integration process with PTML/Ufone.
The assigned ratings reflect PTML’s strong sponsor profile and continued strategic support from PTCL. The ratings also incorporate the Company’s strengthened market position following the acquisition of Telenor Pakistan, which is expected to increase the combined market share to approximately 35%, positioning the merged entity as the country’s second-largest mobile operator. The enhanced scale is expected to improve competitive positioning, expand the subscriber base, and generate operational synergies through network integration, site rationalization, and cost optimization, supporting long-term growth and profitability.
The Company’s financial profile is underpinned by improving cash flows, operational efficiencies, and continued sponsor support, providing strong financial flexibility. Profitability strengthened in CY25, with topline growth of 20% and a substantial narrowing of losses, while further margin expansion is expected as synergies from the merger are realized, including cost savings from consolidated network operations. Liquidity is supported by established banking relationships, sponsor support, and a negative cash conversion cycle. Looking ahead, disciplined financial management and the successful integration of Telenor operations are expected to drive sustainable growth, with significant improvement in coverage metrics and overall credit quality.
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