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Ratings of Saudi Pak Industrial and Agricultural Investment Company Limited

JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed entity ratings assigned to Saudi Pak Industrial and Agricultural Investment Company Limited (Saudi Pak) at ‘AA+/A-1+’ (Double A Plus/A-One Plus). The previous rating action was announced on June 19, 2017. Outlook on the assigned rating is ‘Stable’.
Ratings assigned to Saudi Pak take into account its strong shareholders’ profile, with two sovereigns, Government of Pakistan (GoP) and Kingdom of Saudi Arabia (KSA), having an equal stake in the company under the terms of a joint venture agreement.
The company’s risk appetite remains moderate with disbursements mainly targeted towards mid-tier companies. With reduction in average benchmark rates, yield on investments declined, thereby more funds were channelized towards lending portfolio.In line with higher disbursements, the gross loan portfolio was reported marginally higher at end-FY17. Concentration in the lending portfolio has remained high as the ten largest exposures represented more than half of performing advances.