Home Telecom AAA’ (Triple A) and ‘A-1+’ (A-One Plus) ratings reflect PTCL’s leading market...

AAA’ (Triple A) and ‘A-1+’ (A-One Plus) ratings reflect PTCL’s leading market position

Pakistan Telecommunication Company Limited (PTCL) has been assigned initial long term entity rating of ‘AAA’ (Triple A) and short term rating of ‘A-1+’ (A-One Plus) by JCR-VIS Credit Rating Company Limited (JCR-VIS). The assigned ratings reflect PTCL’s leading market position, extensive network infrastructure, strong financial risk profile and adequate business risk profile.

Long term rating of AAA signifies highest credit quality with negligible risk factors being only slightly more than those for risk-free GoP’s debt. Short term rating of A-1+ signifies highest certainty of timely payment, healthy short term liquidity including internal operating factors and/or access to alternative sources of funds, and is below risk free GoP’s short term obligations. Outlook on the assigned ratings is ‘Stable’.

PTCL continues to enjoy market leadership position in most business segments that it operates. PTCL has a market share of 80% in the documented broadband segment, around 90% in the fixed line voice segment and around 30% in the wireless data segment. PTCL’s share in the IP Bandwidth market stands at around 60%. Despite risk of product substitution from CMOs (for fixed line voice segment) and competition from OTT apps (for international business), business risk profile is supported by healthy growth outlook for broadband and corporate services segment. The ratings incorporate PTCL’s debt free balance sheet and abundant liquidity, important elements that provide the company with financial flexibility and support its rating.

According to JCR-VIS, revenues of the telecom sector in Pakistan have grown at a CAGR of 2.4% over the last 5 years. Moreover, with increase in number of subscribers, tele density has increased to 73% while broadband penetration stood at 29% leaving room for significant demand growth.

Furthermore, JCR-VIS recent findings conclude that four Cellular mobile operators (CMOs) currently continue to dominate the market in Pakistan and generate around four-fifth of the total revenues. Data business remained the main driver of growth after voice business stagnation. CMOs continue to face pricing challenges in a competitive market as reflected by low average revenue per user (ARPU) vis-à-vis regional peers. The remaining one-fifth of the revenues is generated through Local Loop, Long Distance International and Wireless Local Loop segment.

JCR-VIS further validates that the Wire line broadband segment has significant room for growth given that only 5% of the household having access to Wire line broadband vis-à-vis 48.1% average in Asia and 18% in Africa. Given the focus on improving service quality and strengthening in network infrastructure through the network transformation project (NTP), PTCL is well positioned to benefit from growth potential in the broadband segment.

Must Read

Bilal Abbas Khan Becomes the New Face of QMobile in Pakistan

Islamabad  28th , 2020 ;- The highly acclaimed film and television actor Bilal Abbas Khan, currently garnering fame for his unconventional role in ‘PyarKeSadqay,’...

SCO BRING ONLINE PAINTING COMPETITION FOR THE PEOPLE OF AJ&K AND GB

SCO (Special Communications Organizations), the foremost telecom and internet service provider of Azad Jammu & Kashmir (AJ&K) and Gilgit Baltistan (GB) is bringing yet...

TCL Raises the Bar with its TCL 10 Smartphone Series

TCL Raises the Bar with its TCL 10 Smartphone Series  TCL, the second-largest LED TV brand in the world dazzles with its newly launched...

Another lucky draw going live! An opportunity for all to win massive prizes by TECNO

A top-tier smartphone brand, TECNO is back again with another exciting round of online lucky draw activity, “Double Your Happiness” worth Rs. 100 Million...

TECNO Pouvoir 4 Series Review: Your Choice of 2020

TECNO Pouvoir 4 Series Review: Your Choice of 2020 Premier smartphone brand, TECNO Mobiles, has reached to the heights of great success in the past...