Press Release
JCR-VIS Reaffirms Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited at CGR-9
Karachi, December 29, 2017: JCR-VIS Credit Rating Co. Ltd. has reaffirmed the Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at ‘CGR-9’. The previous rating action was announced on December 14, 2016.
The assigned rating reflects sound governance practices instituted at the organization in context of the Joint Venture Agreement (JVA) between the two sponsoring sovereigns. The terms of JV dictate the Board composition, granting equal representation to both sponsors. Management has undertaken measures to adhere to best governance practices to the maximum possible extent.
Rating of PKIC is further supported by presence of satisfactory control environment, strong financial transparency and management profile and effectively functioning board & management level committees. Disclosures of information to public via the company’s website and in the financial statements were made in a timely manner and are considered comprehensive in nature.
Management has developed and implemented a succession plan under which possible replacements for key management personnel have been identified. Resultantly, risk from turnover in key positions has been partly mitigated. Moreover, management may consider enhancing its advances portfolio in order to increase income from its core activity.
For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at (021)35311861-71 or fax to (021)35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Corporate Governance Ratings (August 2017): http://jcrvis.com.pk/docs/CGR-Methodology-201708.pdf
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