JCR-VIS reaffirms entity ratings of Pakistan Kuwait Investment Company (Pvt) Limited at AAA/A-1+

Karachi, June 30, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at ‘AAA/A-1+’ (Triple A/A-One Plus). Outlook on the ratings is ‘Stable’.

The ratings assigned to PKIC incorporate the joint venture shareholding structure of the company with Government of Pakistan and Government of Kuwait being equal shareholders. Standalone risk profile of the company is considered strong reflected by sound capitalization level and conservative risk appetite.

Strategic investment in Meezan Bank Limited, country’s leading Islamic bank, has market value considerably higher than the cost on PKIC’s books. Moreover, earnings from the same provide meaningful contribution to the company’s bottom line.

Lending activities have remained fairly subdued during FY13. Fresh hiring has been undertaken in the corporate finance department to revitalize marketing activities. No change in risk appetite has been communicated by the management; with fresh exposures to be taken only in case of fundamentally sound projects.

Funding sources of the company primarily comprise borrowings from financial institutions. Liquidity profile of the institution is considered sound reflected by adequate liquid assets carried on balance sheet in relation to outstanding liabilities; this is a function of high equity content of balance sheet.

Recently, a change was witnessed at the helm of the organization. In February 2014, Mr. Mansur Khan was appointed as the Managing Director of the company.

For more information, contact:
Ms. Sobia Maqbool
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