JCR-VIS Reaffirms Entity Ratings of Pakistan Kuwait Investment Company (Private.) Limited

Karachi, June 12, 2013 (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’.

Ratings derive strength from the sovereign ownership of the company, with Government of Pakistan and Government of Kuwait being equal shareholders. Stand-alone financial profile of the entity is also considered strong, with considerable capital buffer available vis-à-vis risk on the balance sheet. Moreover, market value of PKIC’s strategic holding in Meezan Bank Limited is considerably higher than the carrying value. The institution is looking to further develop its strategic portfolio over time.

PKIC had continued to maintain a conservative approach since the 2008 crisis, and has primarily built exposure in short-term government backed securities, entailing low credit and market risk. Equity market exposures have also been curtailed over time, reducing PKIC’s exposure to price risk. Lending activities had largely remained subdued. The institution is now looking to build its corporate loan portfolio; internal procedures have been streamlined to facilitate achievement of growth targets.

With a delay of almost one year, the new CEO was appointed in 2012. ORACLE ERP solution is expected to be fully implemented by end Dec’13.

For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk