Pakistan Credit Rating Agency assigns Ratings to Paklibya Holding Company Limited

Pakistan Credit Rating Agency assigns Ratings to Paklibya Holding Company Limited

Lahore: Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short term ratings of PLHC at “AA-” (Double A minus) and A1+ (A one Plus), respectively. The rating of the Privately Placed Term Finance Certificate of PKR 750mln is maintained at AA (Double A). The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect the joint ownership of PLHC by the Governments of Pakistan and Libya. The company has lately reverted to profits, despite sizeable provisioning on its equity portfolio. Meanwhile, the company is strengthening its system and controls and management structure, which are beneficial to its prospects. However, recent classification of certain loans requires management’s attention. A detailed business plan has been operationalized and is beginning to show results; however, its sustainability would be challenging in a highly competitive and adverse economic environment.

The management’s ability to control NPL trend while rationalizing its stock market exposure (exposing the company to market risk) would remain critical. Meanwhile, venturing into profitable businesses would be important to augment its market position. The recent ongoing internal crisis in Libya does not have any immediate bearing on the operations of Pak-Libya.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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