Press Release

VIS Reaffirms entity ratings of Pakistan State Oil Company Limited (PSO)

as rating information about the company:VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Pakistan State Oil Company Limited (PSO) at ‘AA+/A-1+’ (Double A Plus/A-One Plus). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on 3rd December 2021.The assigned ratings take into account PSO’s revenue generation capacity, strong market position, strong ownership structure, government of Pakistan’s (GoP) support and strategic importance of PSO in the domestic energy sector. PSO is the largest oil marketing company in Pakistan, with a market share of 50.02% in PMG, HSD and FO during FY22. The company has an established brand name in the business, and possesses the largest storage and marketing infrastructure in the country. Liquidity profile is considered adequate, however, the presence of circular debt is an area of concern. Capitalization indicators have increased but remained within manageable levels.The ratings assigned incorporate VIS’s expectation that GoP’s support to the company will remain intact, and strategic importance of PSO in the domestic energy sector will continue to be acknowledged. Going forward, maintaining strong market position in the industry and improvement in liquidity profile would remain key rating drivers.

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