Press Release
VIS Assigns Preliminary Short-Term Rating to Short-Term Sukuk 18 (STS-18) of Pakistan Telecommunication Company Limited (PTCL)
Karachi, March 10, 2026: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘A1+ (plim)’ (A one plus preliminary) to PTCL’s proposed PKR 5 bn Short-Term Sukuk - 18 (STS-18). The short-term rating of 'A1+ (plim)' denotes strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. The outstanding entity ratings of PTCL are ‘AAA/A1+’ with a ‘Stable’ outlook.
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.
PTCL plans to issue a rated, unsecured and privately placed, STS-18 of PKR 5 bn, based on suitable Shariah-compliant mode of short-term Islamic Finance facility. The instrument being arranged by a leading commercial bank, will have a maturity of up to six months; the proceeds will be used to finance the working capital requirements of the Company. The expected profit rate on STS-18 will be 3 Month KIBOR.
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.
The assigned ratings draw comfort from PTCL's strategic market position as the country’s leading Integrated Information Communication Technology Company, having the largest fixed-line network. The ratings incorporate the issuer's strong sponsor profile, given that the Government of Pakistan holds significant shareholding of 62% while Etisalat Group of UAE holds a 26% equity stake with management control. The ratings also consider the financial soundness and management acumen of Etisalat Group; rated AA- and Aa3 by S&P and Moody's, respectively.
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
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf