The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (05-July-2005)
   

PACRA Maintains Ratings of Pakistan Industrial Credit & Investment Corporation Limited (PICIC)
 

 
Analyst
Muhammad Usman Majeed
(+92-42-586 9504)
usman@pacra.com

 

 

 









 

 

 

 

 

 

 

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Disclaimer
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The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Pakistan Industrial Credit & Investment Corporation Limited (PICIC) at “AA” (Double A) and “A1+” (A One Plus) respectively. The ratings denote a very strong capacity for timely payment of financial commitments, and are applicable to the senior unsecured creditors of the Corporation. These have been placed on a rating watch pending outcome of the expected merger with PICIC Commercial Bank Limited.

PICIC's ratings reflect the continuing benefits arising from the well conceived diversification strategy to enhance its income from stable and sustainable sources while maintaining its relative positioning among the larger financial sector entities. Though having made substantial contribution to the corporation's profitability, income from capital market operations will remain vulnerable to volatility risk emanating from fluctuations in the stock market. Nevertheless, the enhanced focus on core business operations is expected to lend further stability and sustainability to the income stream. The ratings are also supported by the comfortably maintained risk absorption capacity of the corporation, reflected in the continuing growth of the equity base in line with the business expansion, along with the on-going satisfactory settlement of delinquent loans.

About the corporation: Pakistan Industrial Credit & Investment Corporation Limited (PICIC) was established in 1957. Being the largest DFI in the country in terms of total assets, the corporation's primary activities encompass term financing for industrial and commercial activities, merchant banking operations, capital market operations, consumer financing and leasing. PICIC is now also engaged in asset management consequent to the acquisition of management rights of ICP mutual funds – Lot ‘B' and ICP SEMF (subsequently renamed as PICIC Investment Fund and PICIC Growth Fund respectively), being managed through a new Asset Management Company wholly owned by the corporation. The corporation has also recently ventured into the insurance business by forming a new insurance company. Among the shareholders, public sector corporations have the strongest presence followed by the general public and private institutions.
 
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