JCR-VIS reaffirms Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited

Karachi, December 23, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited 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 26, 2014.

The assigned rating takes into account the governance practices instituted at the organization in context of the Joint Venture (JV) agreement between the two sponsoring sovereigns. Rating also reflects the company’s well established corporate governance framework as evident from the firm’s financial stability, adequate risk management and control infrastructure, experienced executive team and effectively functioning board and management level committees. However, due to company’s legal structure some of the practices that are considered favourable from a governance perspective may not be implemented.

PKIC has adequate systems and processes to identify, measure and control market, credit and liquidity risk, as well as to ensure compliance with all regulatory requirements and policies. As per management, strong control environment has led to no loan disbursed during the last five years becoming non-performing. Significant attention is given to policy and procedural framework with regular updates being undertaken. Disclosures available in the public are adequate and made in a timely manner.

A satisfactory training program and performance evaluation criteria for management team exists. While a succession policy has been developed, however, implementation of succession plan is currently in process. Organization structure and reporting lines have been improved.

Previously, research and special asset management function had a reporting line to the head of risk. These have now been made independent functions while credit administration department has been merged with operations function. Research function has been strengthened with the induction of qualified resources and scope of the function has also been defined more clearly.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk