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Pak Libya Holding Co maintains ratings (23/09/2019)

Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Pak Libya Holding Company (Private) Limited [PLHC] at AA- (Double A minus) and A1+ (A one plus) respectively.

The ratings of Pak Libya reflects sustained performance of the company since last many years. Benefiting from the increasing credit off take in the country in last few years, lending side of Pak Libya picked up pace along with sustaining the asset quality. Treasury operations continue to strengthen the financial position of the company. Investment in government securities increased; the company suffered sizable loss on its investment book; management has shrinked its PIB portfolio to minimize future losses. The company needs to beef up and elaborate its investment policy. Funding base majorly comprises borrowings from money market. During CY18, with significant surge in cost structure - interest and provisioning expense - company booked  pre-provisioning  operating  loss.  Going  forward,  given  current  economic  scenario vigilant monitoring of existing loan book is required while keeping operating costs in check. The  management  continues  to  cautiously  expand  its  existing  loan  book  through  corporate finance activities and further penetrating in SME segments.