Press Release

VIS Reaffirms AAA Ratings of Pakistan Telecommunication Company Limited

Karachi, October 20, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Pakistan Telecommunication Company Limited (PTCL) at ‘AAA/A-1+’ (Triple A/A-One Plus). The medium to long-term rating of ‘AAA’ denotes highest credit quality, with negligible risk factors, being only slightly more than for risk-free debt of Government of Pakistan. The short-term rating of ‘A-1+’ denotes highest certainty of timely payment, liquidity factors are outstanding and safety is just below risk free short-term obligations of Government of Pakistan. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on October 14, 2021.
Assigned ratings reflect PTCL’s market position as the leading Integrated Information Communication Technology (ICT) Company in Pakistan, having the largest fixed-line network in the country. The Company’s products and services include voice services, high-speed broadband internet, Wireless internet, Smart TV (IPTV) service, Smart TV App and Touch App, digital-content streaming services like Netflix and enterprise-grade platforms like Smart Cloud, Tier-3 Certified Data Centers, Managed and Satellite Services. PTCL has wholly owned subsidiaries including Pak Telecom Mobile Limited (UFONE), which is a mobile service provider and a Microfinance Bank, U-Microfinance Bank Limited.

Ratings incorporate strong sponsors profile of PTCL, as 62.2% shareholding is held by the Government of Pakistan (GoP) and 26% by Etisalat Group along with the management control. Etisalat Group is rated AA- and Aa3 by S&P and Moody’s, respectively. Ratings draws support from PTCL’s leading market position in Fixed-line Voice and Wireline Broadband & IPTV. The Company also holds the second position in Fiber Wireline Broadband Service namely Fiber to the Home (FTTH). PTCL’s diversified product offerings, integrated operations and extensive network infrastructure are key rating drivers. PTCL has the largest fiber optic and conventional data transmission network at the national level.

Revenues depict growth of 7% Y/Y in 2021 and 5% Y/Y in H122. Growth mainly emaciated from Fiber Wireline under Broadband segment and B2B services. Ratings take into account stability in profitability margins as gross and operating margins of the Company remained stable during the period under review. Net margins, however, recorded an uptick to 13% during H1’22 on the back of higher other income. (Net Margin - FY21: 8.9%, FY20: 8.4%).

The ratings incorporate PTCL’s strong cash generation and sound financial profile. Going forward, maintaining their capitalization and profitability profile while strengthening their competitive position will remain important for ratings.

For further information on this rating announcement, please contact undersigned (Ext. 207) at 021-35311861-70 or email at

Sara Ahmed

Applicable Rating Criteria: Corporate Rating Methodology (August 2021)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .