The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (23-October-2004)
    PACRA Assigns AAA Rating to Pakistan State Oil Company Limited (PSO)
 

 
Analyst
Ambreen Irfan
(+92-42-586 9504)
ambreen@pacra.com

 

 

 










 

 




Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned a rating of “AAA” (Triple A) and a short-term rating of “A1+” (A One Plus) to Pakistan State Oil Company Limited. These ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments. The ratings are applicable to the senior unsecured creditors of the company. These are the best ratings in PACRA's rating scale.

PSO's ratings reflect its dominant position in the domestic oil marketing business supported by its control 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 upgradation of retail outlets, as well as product diversity and innovation. Above all, the ratings take into account the company's low risk profile, and its very strong capacity for timely payment of financial commitments.

About the company: Pakistan State Oil Company Limited (PSO), country's largest company (on the basis of turnover), involved in the storage, distribution and marketing of Petroleum Oil and Lubricant (POL) products, is the only public sector organization successfully competing with three multinationals. It is the market leader with an overall market share of 60% in White Oil and 75% in Black Oil.

Since the induction of good governance in 2001, PSO has turned around from being a typical distribution-oriented enterprise to a customer-focused company with an aggressive stance towards competition. The company has pioneered a number of innovative products and services during the last three years under its ‘New Vision' philosophy. Like any progressive company, PSO places an increasing emphasis on corporate social responsibility, and towards the health, safety and environment of both its employees and the local populace.

 
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
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