Press Release
VIS Reaffirms Entity Ratings of Pak Brunei Investment Company Limited
Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Pak Brunei Investment Company Limited (‘PBICL’ or the ‘Company’) at 'AA+/A1+' (Double A Plus/A One Plus). Medium to long term rating of 'AA+' indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. 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 27, 2025.
PBICL is a Development Finance Institution (DFI) incorporated in 2006, as an unlisted public limited company under the now repealed Companies Ordinance, 1984 (now Companies Act, 2017), with business operations commencing on August 20, 2007, following approval from the State Bank of Pakistan (SBP). It is a joint venture between the Government of Pakistan and the Brunei Investment Agency (BIA), established with the objective of promoting industrial and agro-based industrial development in Pakistan through commercial investments, project financing, and sectoral support. PBICL offers a comprehensive suite of financial services including corporate and project finance, SME finance, lease finance, structured finance, capital market operations, asset management, Islamic finance, and advisory services, among others. The latest sovereign rating of Pakistan stood at B- (Fitch Ratings and S&P Global) and Caa1 (Moody’s). Brunei does not currently have a publicly published sovereign credit rating from any of the "Big Three" international agencies (S&P Global, Moody's, or Fitch).
PBICL ratings reflect the strong ownership profile of the institution, underpinned by equal shareholding of the Government of Pakistan and the Brunei Investment Agency, along with a stable governance framework and established risk management practices. The ratings also incorporate the Company’s sound capitalization, supported by a sizeable capital buffer relative to regulatory requirements. During the review period, PBICL continued to execute its strategic transition towards expanding its financing portfolio while reducing reliance on treasury investments. This resulted in growth in advances and a gradual rebalancing of the asset mix. Asset quality indicators weakened in 1QCY26, leading to higher provisioning charges. Management's planned enhancements to the credit risk assessment and staging framework are expected to support a more risk-sensitive provisioning approach going forward.
While profitability improved during the year, supported by stronger net markup income and non-markup revenues; core earnings generation capacity needs to be strengthened. Rising provisioning costs and pressure on spreads, led to a loss in Q1CY26. Liquidity metrics remained satisfactory. The ratings remain supported by PBICL’s strong capitalization, conservative investment profile, and continued focus on strengthening core financing operations while maintaining prudent risk management standards.
For further information on this rating announcement, please contact at 021-35311861-64 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