Karachi: VIS Credit Rating Company Limited has finalized the short-term rating of Pakistan Telecommunication Company Limited's (PTCL) Short Term Sukuk VI (STS-VI) at 'A-1+', indicating a high level of certainty in timely payment and excellent liquidity factors.

According to VIS Credit Rating Company Limited, this rating reflects the highest safety level just below the risk-free short-term obligations of the Government of Pakistan (GoP). PTCL, which has an outstanding entity rating of 'AAA/A-1+' with a stable outlook, continues to maintain its robust financial and market position. This latest short-term rating was preceded by a similar assessment on June 24, 2024.

PTCL, originally a state entity and now a public limited company listed on the Pakistan Stock Exchange, has issued this PKR 10 billion unsecured, privately placed Sukuk structured as per Shariah principles. The proceeds from this Sukuk, issued on July 15, 2024, and maturing within six months, are earmarked for financing PTCL's working capital requirements.

The rating takes into account the medium business risk profile of the telecom sector, attributed to its non-cyclical nature and low sensitivity to economic fluctuations. The telecom industry's capital-intensive and heavily regulated environment creates a significant barrier to entry, consolidating PTCL's leading position. PTCL dominates as Pakistan's primary Integrated Information Communication Technology provider with a substantial market share and is supported by major stakeholders including the Government of Pakistan and Etisalat Group of UAE.