VIS Reaffirms Ratings of Oil and Gas Development Company Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- January 20, 2020 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

Quote

VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Oil and Gas Development Company Limited (OGDCL) at 'AAA/A-1+' (Triple A/A-One Plus). The medium to long-term rating of 'AAA' denotes highest credit quality, with negligible risk factors, being only slightly more than for risk-free debt of Government of Pakistan. The short-term rating of 'A-1+' denotes highest certainty of timely payment, liquidity factors are outstanding and safety is just below risk free short-term obligations of Government of Pakistan. Outlook on the assigned ratings is 'Stable'. The previous rating action was announced on February 15, 2019.

The assigned ratings of OGDCL incorporate its ownership structure with majority shares held by the Government of Pakistan. The low business risk of the Company emanates from its robust margins, providing considerable cushion against volatility in international oil prices. Moreover, OGDCL is the leading Company in exploration and production sector of Pakistan. The Company has an assured product...