VIS upgrades Pakistan State Oil’s rating to ‘AAA’

February 06, 2026 (MLN): VIS Credit Rating Company Ltd. (VIS) has upgraded Pakistan State Oil Company Limited’s (PSX:PSO) medium- to long-term entity rating from ‘AA+’ to ‘AAA’, while retaining its short-term rating at ‘A1+’.

The upgrade reflects PSO’s highest credit quality, with negligible risk, and comes with a ‘Stable’ outlook.

The rating improvement is supported by PSO’s strong financial metrics, its role as Pakistan’s largest oil marketing company, and implicit government backing.

VIS highlighted the government’s efforts to resolve inter-corporate circular debt in the energy sector, which further strengthens PSO’s financial profile.

Despite challenges in the fuel distribution sector and increasing competition, PSO maintains market leadership.

The company leverages its stakes in Pakistan Refinery Limited (PRL) and Pak-Arab Pipeline Company  to stabilize its supply chain, while expanding its retail presence and EV charging network.

PSO’s profitability has improved due to cost efficiencies, lower financial charges, and better liquidity from receivable recoveries.

VIS noted that continued government support, improved debt coverage, and enhanced capitalization would be key factors for maintaining the rating in the future.

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