Lahore, December 27, 2019 (PPI-OT): The ratings reflect Dawood Hercules Corporation Limited’s (“DH Corp” or “the Company”) very strong profile as an investment company with investments in diversified sectors mainly through Engro Corp. DH Corp has structured oversight process in place for monitoring and making new investments. Sizeable liquid funds, accumulated from the divestment in Hub Power Company Limited (HUBCO), are held in a money market instruments indicating very strong liquidity.
Recently, the Company started investment in blue chip market securities exposing it to market volatility. DH Corp is exploring new investment avenues to add to its portfolio. Meanwhile, DH Corp is expected to have a steady and increasing dividend stream from it’s subsidiary, Engro Corp, as underlying business continues to perform well. The business acumen of the sponsoring family and strong governance practices provide support to the ratings.
The ratings depend on the managements ability to sustain low risk profile and follow prudent investment policy by the Company. At the same time, maintaining strong financial profile and liquidity remains important. Any significant increase in debt and/or prolonged downturn in invested companies will impact the ratings.
For more information, contact:
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
Category: General Business News