The Pakistan Credit Rating Agency (Pacra) has maintained the 1ong-term and short-term entity ratings of Sui Northern Gas Pipelines Limited (SNGPL) at AA (double A), and AI+ (A one plus), respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings reflect SNGPL's sovereign ownership structure and strategic importance, implying strong sponsor support. The ratings also incorporate the company's low business risk, attributable to its monopolist position in its area of franchise (Punjab, Khyber Pakhtunkhawa (KP) and Azad Jammu and Kashmir (AJK), guaranteed return on its net operating assets. Meanwhile, robust cash flows and low leveraged capital structure of the company lend it financial flexibility.-PR
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