Pakistan Credit Rating Agency maintain entity ratings of Pakistan Kuwait Investment Company

Lahore, June 21, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at “AAA” (Triple A) and “A1+” (A One Plus) respectively. Meanwhile, a “Negative Outlook” has been assigned to these ratings. The ratings denote the lowest expectation of credit risk emanating from exceptionally strong capacity for timely payment of financial commitments.

The ratings reflect strong ownership of PKIC – jointly owned by the Governments of Pakistan and Kuwait. The ratings draw comfort from the company’s sound capitalization, conservative risk appetite, and robust strategic investment book, also providing support to the company’s earnings. Although PKIC maintains a sizable stock market portfolio, exposing it to market risk.

The company is strengthening respective risk management framework. The management being cognizant of the subdued operating environment aims to continue its cautious lending stance while focusing on its asset quality.

The negative outlook on ratings highlights significant delays in appointment of the Managing Director. This, while, not being a good governance practice, may lead to a strategic void.

For more information, contact:
Hammad Rashid
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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