JCR-VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Ltd

October 15, 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.

According to the press release, 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, the report said.

“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, the report added.

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.