Karachi: The Pakistan Credit Rating
Agency (PACRA) has assigned long-term and short-term entity ratings of
“AAA” (Triple A) and “A1+”(A One Plus) respectively
to Pakistan State Oil – the largest oil marketing company of Pakistan.
These ratings denote the lowest expectation of credit risk emanating from
an exceptionally strong capacity for timely payment of financial commitments.
These are the highest credit ratings in PACRA’s rating scale.
PSO’s ratings reflect its dominating position in the domestic oil
marketing business supported by its spread over the country’s marketing
and distribution infrastructure network which makes it the main beneficiary
of growth in demand for POL products.
The ratings also recognize the restructuring efforts of the company’s
forward-looking management that has engendered a sustainable improvement
in overall operations, differentiating it from a typical public sector
entity, and enabling it to better withstand competitive pressures. The
latter is evident from the company’s retail business, which has
benefited from the up gradation of retail outlets, as well as product
diversity and innovation.
Above all, the rating take into account the company’s low risk profile,
and a very strong capacity for timely payment of financial commitments. |