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The Pakistan Credit Rating Agency Limited
Press Release

Date
03-May-19

Analyst
Hamza Ghalib
hamza.ghalib@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Withdraws Entity Ratings of Pakistan State Oil Company Limited

Rating Type Entity
Current
(03-May-19)
Previous
(31-Oct-18)
Action Withdraw Maintain
Long Term - AA
Short Term - A1+
Outlook - Stable
Rating Watch - -

On account of non-renewal of rating mandate, PACRA has withdrawn entity ratings of Pakistan State Oil Company Limited.

About the Entity
PSO is listed on Pakistan Stock Exchange (PSX). The company is 22% owned by Government of Pakistan (GOP), ~15% by NBP, and 3% by PSOCL Employee Empowerment Trust. Other major shareholders comprise financial institutions (~45%) and the general public (~15%). GOP exercises its control through direct and indirect holding. With a network of 3,514 retail outlets (company operated: 25) and ~50% market share during FY18 (FY17: ~54%). PSO is primarily engaged in storage, distribution, marketing and import of petroleum and related products. A.F.Ferguson & Co., a member firm of PWC, and EY Ford Rhodes are the external auditors of the company. They have expressed an unqualified opinion on the company’s financial statements at end-Jun18.

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.