Press Release

VIS Assigns Initial Ratings to Pak Telecom Mobile Limited

Karachi, July 14, 2022: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘AA-/A-1’ (Double A Minus/A-One) to Pak Telecom Mobile Limited (PTML). The medium to long-term rating of ‘AA-’ denotes high credit quality coupled with strong protection factors. Moreover, risk factors may vary slightly with possible changes in the economy. The short-term rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned ratings is ‘Stable’.

PTML provides cellular mobile telephony and wireless broadband internet services in Pakistan under the brand name 'Ufone 4G'. The company is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL). As a result of privatization of PTCL during 2006, 26% of PTCL shares along with the management control were acquired by UAE-based Emirates Telecommunications Group PJSC (e&) while Government of Pakistan (GoP) retained 62.2% stake in PTCL. PTCL has been assigned “AAA/A-1+” rating by VIS Credit Rating Company Limited (VIS) and ‘e&’ has been assigned “AA-” and “Aa3” ratings by S&P Global and Moody’s, respectively.

Ufone 4G has network coverage all over Pakistan and provides 3G/4G mobile broadband services to over 22 million customers throughout the country. It also serves over 250,000 corporate customers and caters to International Roaming to more than 312 live operators in more than 145 countries. The company is also increasingly focusing on value-added services with the regular introduction of innovative services. With the acquisition of additional spectrum, Ufone carried out aggressive network modernization activity throughout Pakistan. Ufone 4G has revamped the entire data portfolio by launching new products and modifying the existing ones to meet the growing needs of data customers at competitive prices. The management has reported that these initiatives have enabled Ufone 4G to have the fastest growing 4G customer base in the country. The management has further reported that PTA has also declared Ufone 4G as the No.1 voice and data network of the country in its latest Mobile Networks Benchmark Report for 2022.

Going forward, VIS expects competition to remain intense and capital investment to remain elevated as CMOs expand and upgrade their network to service the exponential increase in high-speed wireless data consumption. The ratings are dependent upon continued implicit support of the parent in terms of equity injection or otherwise, as seen in previous years. Moreover, augmentation of market share by enhancing revenue growth and profitability is critical. Maintenance of sound financial discipline regarding gearing and coverages would also remain important.

For further information on this rating announcement, please contact Mr. Maimoon Rasheed, at 042-35723411-13 (Ext. 8008) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

VIS Entity Rating Criteria: Corporates (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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited