The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and shot-term ratings of PLHC at “AA-“ (Double A minus) and “A1+” (A One Plus), respectively. 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 PLHC’s sustained strong risk absorption capacity stemming from augmenting equity base and relatively low risk profile of the asset portfolio. The ratings also factor in the company’s somewhat subdued profitability due to low spreads. This emanates from the inherent disadvantage of not being able to attract low cost deposits in the absence of a branch network. While PLHC has launched several initiatives to enhance the return on financing and increase fee based income, the profitability is likely to remain subdued.

About the company: Pak-Libya Holding Company (Pvt.) Limited was established as a joint stock company on 14th October, 1978 equally owned by the Government of the Islamic Republic of Pakistan and the Socialist Peoples Libyan Arab Jamahiriya.  The Board of Director (BOD) comprises six directors. The managing director of the company has recently been appointed for a period of three years. The new MD possesses over twenty-five years of diversified experience both in local and international banks. With this change in the top management, an immediate strategic shift is highly unlikely, and the company is expected to follow the current business strategy.