Press Release

JCR-VIS Reaffirms Corporate Governance Rating of Pakistan Kuwait Investment Company Private Limited at ‘CGR-9’

Karachi, October 18, 2012: JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at ‘CGR-9’.

Corporate governance ratings are based on evaluation of key governance areas of the rated institution including regulatory compliance; ownership structure; composition and operations of the Board of directors (BoD) and executive management; self-regulation; financial transparency and relationship with stakeholders.

PKIC has been established under a joint venture arrangement between the Government of Pakistan (GoP) and the Government of Kuwait (GoK). Both shareholders of the company have equal representation on the company’s BoD, and the joint venture agreement between the sponsors defines the role of each shareholder.

The rating takes into account governance practices instituted at PKIC keeping in view the nature and scope of the company’s business activities and the applicable provisions of the revised Code of Corporate Governance (CCG), issued by the Securities & Exchange Commission of Pakistan in March 2012. The company is also in compliance with the governance related provisions laid down in the joint venture agreement between the shareholders.

To improve controls over systems through technological interface, the company is currently in the process of implementing Oracle ERP Solution comprising four applications. So far, the company has implemented three applications, including Oracle Financials, Treasury and Seibel. As per the initial timeline, the project was targeted to be completed by end-Dec’11; however, there have been delays in the implementation. The company has already implemented the COSO framework for internal controls.

The post of Managing Director had been vacant since August 2011; the GoP has recently nominated Mr. Shaharyar Ahmed, who is a seasoned banker, as the company’s Managing Director; pending SBP’s approval. With change at the helm of the organization, there may be some changes in overall business strategy of the company, going forward.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311872-73.



Javed Callea
Advisor

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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .