KARACHI, May 7: The Pakistan Credit Agency Limited has upgraded the long-term entity rating of PAIR Investment Company Limited (PAIR) to ‘‘AA” (Previous: AA-) and maintained the short-term rating at “A1+” (A One Plus).

These ratings indicate a very low expectation of credit risk. A press release by the PAIR stated that the ratings continue to derive strength from sovereign ownership structure of PAIR- jointly owned by the Governments of Pakistan and Iran.

PAIR’s ratings are dependent on the management’s ability to sustain growth momentum while managing the associated risks.

Significant deterioration in asset quality, thereby impacting risk absorption capacity, would have negative implication for the ratings.

Upholding high governance standards remain important, the company said.

PAIR Investment Company Limited is in operations since May 2007 as a Development Finance Institution. It is a joint venture with equal ownership by the Government of Pakistan through the Ministry of Finance (MoF) and the Islamic Republic of Iran through Iran Foreign Investment Company (IFIC).

The objective of the company is to promote economic development in Pakistan.

According to the Joint Venture Agreement, both partners have equal representation on the six-member board. Bijan Rahimi, nominated by IFIC, is the board’s Chairman, while Syed Ahmed Iqbal Ashraf, nominated by MoF holds the position of MD.