KARACHI: JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long-term entity rating of Oil and Gas Development Company Limited (OGDCL) at AAA and short-term entity rating at A-1 plus.
The outlook on the assigned rating is stable. The previous rating action was announced on October 31, 2017, said a press release issued here on Thursday.
The assigned ratings of OGDCL reflect its shareholding structure with around three-fourth shares held by the government of Pakistan.
Business risk is considered low on account of the company’s strategic importance in the oil and gas sector of the country. OGDCL is the industry leader in Pakistan’s energy sector.
The ratings also take into account low financial risk profile of the institution as reflected by a debt-free capital structure.
The company continues to face issues related to inter-corporate debt with large amounts of overdue receivables carried on the balance sheet.
However, liquidity profile remains adequate as healthy margins and adequate cash flow generation enable the company to meet its expenditure requirements indigenously.
