Press Release

VIS Reaffirms Entity Ratings of Pak Telecom Mobile Limited (PTML)

Karachi, November 22, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Pak Telecom Mobile Limited (PTML) at ‘AA-/A-1’ (Double A Minus/A-One). 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’. ‘The previous rating action was announced on July 14, 2022.

The ratings assigned to PTML derive strength from its strong sponsor profile with the Company being wholly owned by Pakistan Telecommunication Company Limited (PTCL); major shareholding of 62.2% of PTCL is held by Government of Pakistan while Etisalat Group holds equity stake of 26% with management control. PTCL is assigned "AAA/A-1+" ratings by VIS, and Etisalat is given "AA-" and "Aa3" ratings by S&P Global and Moody's respectively. Further, the ratings drive comfort from the low business risk profile of the sector owing to the non-cyclical nature of the industry and high barriers to entry.

Post 4G Spectrum acquisition in September 2021, the Company’s topline and ARPU levels have improved; however, financial risk profile remains weak marked by dip in margins, persistent incurrence of losses, inadequate cash coverages and highly leveraged capital structure. In order to address the issue, the management has introduced cost-cutting strategies including technological optimization & vendor negotiation coupled with revenue diversification and increase in prices. The aforementioned initiatives are projected to enhance gross margins while maintaining service quality and financial stability. As per the management, to support the financial risk profile, any financial assistance in the foreseeable future will be in form of equity injection as no additional long-term debt from commercial banks is planned to be obtained further. The ratings are underpinned by strong sponsors support by way of equity injection and will remain dependent on restoration of profitability position coupled with improvement in liquidity and gearing indicators in the medium term.
For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

Applicable Rating Criteria: Industrial Corporates (May 2023)

VIS Issue/Issuer Rating Scale

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