Press Release

JCR-VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Company Limited at CGR-9

Karachi, October 12, 2018: JCR-VIS Credit Rating Co. Ltd. has reaffirmed the Corporate Governance Rating of Pak Oman Investment Company Limited (POIC) at ‘CGR-9’. The rating signifies very high level of corporate governance. The previous rating action was announced on November 1, 2016.

The assigned rating takes into account the governance practices instituted at the organization in context of the Joint Venture (JV) agreement between the two sponsoring sovereigns. The terms of the JV agreement dictate the Board composition. Given equal representation of the sponsoring governments and legal structure, some of the practices that are considered favorable from a governance perspective may not be implemented at the institution.

Corporate governance ratings are primarily based on evaluation of key governance areas of the rated institution including regulatory compliance, ownership structure, composition and operations of the Board of directors (BoD) and executive management, self-regulation, financial transparency and relationship with stakeholders. Overall control environment of the institution is considered satisfactory.

Board oversight is considered satisfactory in addition to which there are effectively functioning Board and management level committees. A performance evaluation mechanism for the Board was introduced in 2014. The Board is overseeing matters of both strategic nature and also monitoring the performance of the company. There has been some turnover at senior management level, which were timely filled.

All information related to the company is disseminated in electronic form through official website in addition to periodic financial statements. Level of financial and qualitative disclosures in the public domain is considered satisfactory.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or Ms. Muniba Khan (Ext: 214) at (021)35311861-71 or fax to (021)35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Corporate Governance Ratings (August 2017)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited