The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term ratings of Pak-Libya Holding Company Pvt Ltd (PLHC) at "AA-" (Double A minus) and "A1+" (A one Plus), respectively.
According to a press release, the rating of existing PPTFC of Rs 750 million has also been maintained at "AA" (double A), while preliminary rating of AA (double A) has been assigned to the proposed secured TFC of Rs 1,500m inclusive of Rs 500m green shoe option.
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. On a standalone basis, the company has managed to ease out pressure on its overall performance. The company has shown improvement in net interest income and significant contribution came from other income sources.
These improvements emerged as a result of new business plan implemented by the current management in the year 2013 with a view to revamping the entire operations of the company and achieving the targets envisaged therein. Besides, the PLHC manifested profitable operations on standalone basis and managed recoveries from troubled assets during FY-2013 by implementing the plan.
Pak-Libya Holding Company, being a joint venture development finance institution, is actively engaged in project finance, corporate finance, investment banking, and capital & money market operations in the domestic financial market. The company also offers attractive investment opportunities by way of Certificates of Investment (COIs) for various tenors to general public as well as institutions and other entities.
The company's total assets base, comprising mainly advances and investment portfolio, stood at Rs 12.985 billion as on March 31, 2014. The shareholders of Pak-Libya are in process to inject fresh capital to enhance the capital base of the company which will also support future growth and business prospects. Over the last 30 years plus; PLHC has provided financial assistance of more than Rs 30 billion to a large number of projects in Pakistan in the textile, chemicals, engineering, power, cement, sugar, pharmaceutical, education, health and fertilizer sectors.
The company is continuously strengthening its management structure and control environment, which are expected to add value to its prospects. In addition, the company is actively pursuing for tapping new business opportunities evolving under the current scenario for economic development of the country.
(Source: Business Recorder)