Press Release

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

Karachi, August 16, 2013: 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.

The corporate governance practices at PKIC are viewed in context of the Joint Venture Agreement (JVA) between the sponsoring shareholders, Government of Pakistan and Government of Kuwait. PKIC is in compliance with the governance related provisions laid down in the JVA. Full scope compliance with the applicable provisions of the revised Code of Corporate Governance, 2012 has yet to be achieved. A mechanism for self-evaluation of the Board of Directors as a whole has to be implemented by 2014.

In Nov’12, the position of CEO was filled with the appointment of a seasoned professional. PKIC continues to exhibit strong financial risk profile. Some of the strategic investments made by PKIC have now matured and acquired prominent status in their respective sectors, such as Islamic banking and asset management.

With complete implementation of Oracle ERP solution expected by Dec’13, the company will have improved controls through technological interface. In line with best practices, there is room for improvement in disclosures in the annual financial statements and on the company’s corporate website. The management has reiterated its commitment to improve upon these areas.

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.



Jamal Abbas Zaidi
Deputy CEO

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 2013 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .