Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Pakistan Telecommunication Company Limited (PTCL) at “AAA” (Triple A) and short term ratings of “A-1+” (A-One Plus). The previous rating action was announced on October 11, 2018. The rating reflect PTCL’s leading market position, extensive network infrastructure, strong financial risk profile and adequate business risk profile.
PTCL gets ratings from VIS. A long term rating of “AAA” indicate the highest credit quality with small risk factors, been only slightly more than for risk-free debt of the government of Pakistan. Short-term rating of “A-1+” indicates the highest certainty of timely payment, liquidity factors are outstanding and safety is just below risk-free short-term obligations of the government. Outlook on the assigned ratings is stable.
PTCL is the leading integrated Information Communication Technology ompany in Pakistan, having the largest fixed-line network in the country. The company’s products and services include voice search, high-speed broadband internet, CharJi wireless internet, Smart TV service, Smart TV App and Touch App, digital-content streaming services such as icflix and enterprise-grade platforms such as smart cloud, tier-3 certified data centers, managed and satellite services.
The ratings draw constraint from PTCL’s leading market position in the fixed-line voice segment with a 90% share, wireless broadband segment with 80% share, and wireless data segment with a 30% share. The ratings also factor low financial risk profile of the company, as reflecting in healthy cash flows generation and debt-free balance sheet despite significant capital expenditure over the past three years to improve quality of services and strengthen its network infrastructure by network transformation project.
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