Press Release

VIS Reaffirms Entity Ratings of Pak China Investment Company Limited

Karachi, June 23, 2022: VIS Credit Rating Company Limited (VIS) has re-affirmed the entity ratings of Pak China Investment Company Limited (PCICL) 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 (GoP). 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 GoP. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on June 28, 2021.
The assigned ratings to PCICL incorporate implicit support of its two sovereign sponsors, GoP and People’s Republic of China (PRC), with equal shareholding held through Ministry of Finance (MoF) and China Development Bank (CDB), respectively. CDB has an outstanding international rating of ‘A+’ from an international credit rating agency. In line with the economic recovery post COVID-19, a noticeable uptick was observed in disbursements made during 2021, as the institution continued to follow the strategy of tapping rated clients. Overall, asset quality has exhibited improvement due to the de-classification of some clients and higher recoveries related to legacy clientele, with no new infection in the incumbent portfolio. Ratings factor in a sizeable and well-diversified investment portfolio with credit risk emanating from the same to be on the lower side given more than 50% of the exposure in Federal Government Securities and TFC investments in high rated instruments offered by the financial sector.
Ratings also take into account maintained profitability levels and strong liquidity profile led by sizeable quantum of investments carried on books, coupled with substantial cash balances. Moreover, equity base of the entity has expanded on a timeline basis on account of profit retention. Consequently, capitalization indicators are considered strong with CAR reporting higher than the minimum regulatory requirements. In line with the institution’s mandate and its role under CPEC, PCICL’s focus also remained on matchmaking between Chinese and Pakistani industries through joint ventures and advisory services. At the same time, the institution is exploring the option of debt and equity exposure in high importance sectors, helping to promote FDI in Pakistan.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 201) at 021-35311861-66 or email at

Javed Callea

Applicable rating criterion: Government Supported Entities (July, 2020)

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 .