LAHORE, June 14: Pakistan Credit Rating Agency has upgraded PICIC’s long-term and short-term ratings to “A” (single A) and “A1” (A one), respectively.

The upgrading is in recognition of the enhanced risk absorption capacity of PICIC emanating from a stronger financial structure, said a news release issued by Pacra here on Friday. It did not mention its previous ratings.

It said PICIC’s strong liquidity position provides adequate comfort for meeting short-term obligations. Pacra hopes that PICIC’s core earnings would improve on the back of greater focus on lending operations.

Pacra says the PICIC management has also put in place a system of credit evaluation and monitoring for maintaining the potential risk while expanding the loan portfolio besides diversifying operations beyond traditional development finance to commercial banking and leasing in line with its plans to set up a “financial super market”.