Press Release

VIS Reaffirms Entity Ratings of Pak China Investment Company Limited

Karachi, June 28, 2024: 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 26, 2023.

The assigned ratings of Pak China Investment Company Limited (PCICL) reflect the support from its sovereign sponsors, the Government of Pakistan and the People’s Republic of China, through the Ministry of Finance and China Development Bank (CDB), respectively. Despite challenging economic conditions, the institution has adopted a cautious and conservative approach to disbursements and embarked on a consolidation strategy focusing on low credit risk clients. Asset quality indicators have improved, with no new cases of infection and some recoveries from delinquent clients. During the year, appointment of a new Managing Director is noted positively, however, there is room for improvement in corporate governance and external reporting framework. In addition, the assigned ratings factor in PCICL’s conservative risk appetite in terms of investment policy given no investment in long-term government securities coupled with restricted stock market exposure. Further, the ratings are underpinned by strong capitalization, sound profitability and liquidity profile, together with diversified revenue streams and efforts of the senior management to implement shareholders’ strategic goals and vision

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

VIS Entity Rating Criteria: Government Supported Entities
https://docs.vis.com.pk/docs/Meth-GSEs202007.pdf

Financial Institutions Rating Methodology
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf

Rating Scales & Definitions:
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .