Jazz’s long-term credit rating updated to ‘AA’ by PACRA
Islamabad – 27 May 2021: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded Jazz’s long-term rating to the highest credit quality of ‘AA’ with a stable outlook. The rating depicts the strong financial depth of the company in the industry. This review was conducted by incorporating the company’s business profile and performance with the long-term rating dependent upon the leading market position, healthy revenue growth and profitability, and dynamic financial environment.
An upgrade to its credit rating allows Jazz far-reaching market access to meet the funding pertinent for technology upgrade and 4G network expansion. Moreover, it also reflects on its strong financial profile, liquidity, and commitment towards the lending community.
PACRA highlighted in its report that the company’s financial profile exhibits a stable outlook demonstrated by eased working capital strategies, comfortable coverages, and moderate leveraging (Dec’20).
As Pakistan’s largest telecom operator, Jazz holds a 38% market share with 69 million subscribers (at the time of the review i.e. 21 March 2021). Jazz is also the market leader in 4G after witnessing remarkable growth in 4G subscribers (61%) during CY20.
Gabor Kocsis, CFO – Jazz said, “Jazz’s high credit rating reaffirms its leadership position within the local cellular industry. It also indicates that we were able to cope with the pandemic and other unexpected challenges. The company’s strategy focuses on investing in 4G network expansion, promoting the uptake of digital financial services and digital tools, and increasing its share in the local market through innovative offerings and providing cutting-edge business solutions. Jazz will continue to optimize its operational costs in a way that encourages innovation and provides better services and products to customers as well as outstanding returns to shareholders”.
PACRA is Pakistan’s first rating agency and its rating lends credence to the financial competence and the strength of the company.