Karachi: VIS Credit Rating Company Limited has assigned a preliminary rating of ‘A-1+’ to the proposed Short-Term Sukuk VI (STS-VI) of Pakistan Telecommunication Company Limited (PTCL), amounting to PKR 10 billion. This rating indicates the highest certainty of timely payment and outstanding liquidity, reflecting a risk level just below the government's short-term obligations.

According to VIS Credit Rating Company Limited, the ‘A-1+’ rating for PTCL's STS-VI is backed by the company’s strong market position and strategic importance in Pakistan’s telecommunications sector. PTCL, transitioning from a state-owned entity to a public limited company since 1995, has broadened its services across Pakistan and holds significant market leadership with over 71% of the fixed-line network.

The short-term Sukuk, arranged by a leading commercial bank and based on Shariah principles, is designed to finance PTCL’s working capital requirements with a maturity of up to six months. The profit rate will be tied to the 6M KIBOR, adding up to 20 basis points per annum. The ratings reflect PTCL’s stable outlook and robust financial performance, characterized by strong revenue growth, high profitability, and sound liquidity management. The company benefits from substantial government shareholding and strategic management by the Etisalat Group, enhancing its creditworthiness.