LAHORE, April 6: The long-term and short-term entity ratings of Parco have for the seventh consecutive year been maintained by the Pakistan Credit Rating Agency (Pacra) at "AAA" (triple A) and "A1+" (single A one plus).
A Pacra announcement released here on Tuesday said the entity ratings were applicable to the senior unsecured creditors of the company. The rating of the secured TFC of Rs2.5 billion has been maintained at "AAA" (triple A). The ratings denote the lowest expectation of credit risk and an exceptionally strong capacity for timely payment of financial commitments.
Parco - a joint venture between the Pakistan government having 60 per cent holding and the Emirates of Abu Dhabi with 40 per cent stake - is involved in refining, transporting and marketing of various petroleum products in the country in an integrated manner.
Parco's ratings reflect stable business operations, effective management policies, competitive margins on pipeline operations and the guaranteed 25 per cent minimum return on the paid-up capital attributable to its investment in the Mid-Country Refinery, a project implemented under the 1994 petroleum policy.
"As a result, the company's business and financial risk continues to be very low. Nevertheless, the liquidity levels are expected to remain aligned to the pace of disbursements of SGR (shortfall in the guaranteed return) by the Pakistan government," the announcement said.
