The Pakistan Credit Rating Agency Limited
Press Release


Rohail Amjad

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PACRA maintains entity ratings of Hum Network limited.

Rating Type Entity
Action Maintain Maintain
Long Term A+ A+
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

The ratings reflect HUM Network's ability to uphold its relative market position in the domestic media industry. With an appreciable presence of HUM TV - the company's flagship channel in entertainment segment, HUM Network has expanded into multiple TV ventures on a timeline basis including Hum Masala, Hum Sitaray and Hum News since May'18. The company has booked a net loss over the last one year on account of Industry-wide factors as well as the cash outflow in the amidst of the launch of News Channel. The ratings, however, take into consideration on-balance sheet liquidity to support the overall risk profile of the company though the revival from losses is essential. The management is also eyeing new revenue streams; also they are looking at increased revenue from the News Channel, which is expected to reach break-even over the medium horizon. The times are challenging, decreasing revenue in all segments is a concern. The company is resolved to cruise through the tough period with the help of available cushions available on its balance sheet. The company currently has no short term debt.
The ratings are dependent upon recourse to improved financial risk profile. Prolonged downturn in the bottom line would have an adverse impact on the credit rating of the company.

About the Entity
HUM Network Limited, listed on Pakistan Stock Exchange, commenced its operations in January 2005. The company's shareholding is dominated by ownership of foreign companies (~51%), followed by shares of the Sponsoring family (~29%) - Mr. Duraid Qureshi (~24%) and Mr. Shunaid Qureshi (~5%).

The company is one of the largest media houses of Pakistan that has a diversified portfolio of business. Board of Directors comprises nine (9) members with one independent directors. Mr. Duraid Qureshi is the CEO of the company. He is supported by a team of experienced professionals.

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 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.