March 11, 2026 (MLN): VIS Credit Rating Company Limited has reaffirmed the long-term entity rating of ‘AAA’ and the short-term rating of ‘A1+’ of Pakistan Telecommunication Company Limited (PSX:PTC), which reflects the company’s highest credit quality and strongest capacity to meet its financial obligations.

The previous rating action came in on January 10, 2025.

The long-term rating of ‘AAA’ indicates negligible risk and a credit profile that is only marginally weaker than the sovereign debt of the Government of Pakistan.

Meanwhile, the ‘A1+’ short-term rating denotes the strongest likelihood of timely repayment of short-term liabilities and outstanding liquidity strength.

VIS noted that PTC’s ratings are supported by its strong sponsor profile, with majority ownership by the Government of Pakistan and continued strategic involvement of Etisalat Group through a significant equity stake and management control.

The agency also highlighted the relatively low business risk of the telecom sector due to stable demand, high capital requirements, regulatory oversight, and structural barriers to entry.

As Pakistan’s leading integrated ICT provider, PTC maintains the largest fixed-line network and has a strong presence in broadband, enterprise connectivity, and ICT solutions.

According to VIS, PTC’s financial profile reflects higher leverage and moderated coverage following debt-funded capital expenditure and financial support to subsidiaries.

However, strong operating scale, improving cash flow generation, and access to diversified funding sources continue to support financial flexibility.

Going forward, disciplined financial management, successful integration of acquisitions, and continued expansion will remain key factors in sustaining PTC’s growth and supporting its ratings.

PTC was incorporated as a public limited company on December 31, 1995, taking over telecom operations from the former Pakistan Telecommunication Corporation under the Pakistan Telecommunication (Re-organization) Act 1996.

The company is listed on the Pakistan Stock Exchange and headquartered in Islamabad. It provides a wide range of telecommunication services across Pakistan, including in Azad Jammu and Kashmir and Gilgit-Baltistan.

PTC also operates wholly owned subsidiaries, including Pak Telecom Mobile Limited and U Microfinance Bank Limited. On December 31, 2025, the company completed the acquisition of Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited, acquiring 100% shareholding in both entities.

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