Saturday, February 4
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PACRA Maintains Entity Ratings of Pakistan Services Limited

Lahore, March 29, 2018 (PPI-OT): Pakistan Services Limited (PSL) is the owner and operator of Pearl Continental (PC) Hotels in Pakistan. PC is the premium five star hotel chain of the country. The rating reflects the leading position of the PC brand in the domestic market alongwith a diversified geographical presence of its hotels, providing competitive edge over other players. PSL currently has presence in six major cities. The rating incorporates association of PSL with Hashoo group – leader in the domestic hospitality market with over 2500 rooms in 20 properties.

PSL has observed continuous growth in Occupancies and Average Daily Rates – facet of improved security situation and increased economic activity in the country. PC – Lahore is the biggest hotel with 600+ rooms contributing ~45% to the overall revenue stream. The company currently has a low leveraged capital structure but debt driven expansions would increase the company’s leveraging though remaining at a comfortable level.

In order to capitalize on the increasing demand in the hospitality sector, PSL targets sizeable investments in expansion and development of new properties in both high-end and mid-tier segments. The company also plans to enter into the real estate housing and mega mall projects through its subsidiaries. Management of coverages amidst rising debt levels would remain crucial. Timely completion of under construction properties improving the cashflow stream would provide support to the coverages.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com