Karachi, VIS Credit Rating Company Limited has reaffirmed the high credit ratings of Pak Brunei Investment Company Limited (PBICL) at ‘AA+/A-1+’, indicating strong credit quality and liquidity with a stable outlook moving forward.
According to VIS Credit Rating Company Limited, The long-term rating of ‘AA+’ reflects strong protection factors and modest risk, which may fluctuate due to economic conditions. The short-term rating of ‘A-1+’ highlights the company’s outstanding liquidity and safety, nearly equivalent to the Government of Pakistan’s risk-free short-term obligations. The reaffirmation of these ratings reflects consistent performance and stability.
Pak Brunei Investment Company Limited, regulated by the State Bank of Pakistan, is a Development Finance Institution equally owned by the Governments of Pakistan and Brunei, focusing on supporting industrial and agricultural projects. Under the leadership of CEO and Managing Director S. M. Aamir Shamim, appointed in May 2023, and a balanced board of directors from both governments, PBICL has navigated socio-political and economic challenges effectively. Despite a decline in the gross advances portfolio in 2023 due to cautious strategies amidst rising inflation and interest rates, PBICL managed a strong focus on sectors like textiles and pharmaceuticals, primarily serving the private and corporate segments.
The institution also reported growth in its investments, particularly in government securities, by participating in the State Bank of Pakistan’s open market operations, which significantly bolstered its net investment portfolio. By March 2024, liquid assets sufficiently covered deposits and borrowings, enhancing the liquidity profile to 53.4%. Moreover, profitability benefited from higher yields on earning assets and non-markup income, although the first quarter of 2024 experienced some profitability pressures due to spread compression. Nevertheless, the capitalization remained robust with a Capital Adequacy Ratio of 22% as of March 2024, substantially above the regulatory requirements.