AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained rating of ‘A-’ (Single A Minus) of privately placed secured Sukuk of PKR 880mln by Amreli Steels Limited (ASL). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The rating reflects the established franchise of the company in reinforcement steel bars manufacturing segment. The rating incorporates continuing demonstrated commitment of sponsors – Akberali Family. However, financial profile of the company remains weak owing to lower profitability and constrained cash flows, resulting in weak debt servicing coverages.
Cognizant of this, the management is making efforts to revamp its financial discipline while bringing efficiency in overall plant operations. In addition, commissioning of billet manufacturing plant would help company to ensure stable raw material supply while improving its re-bar capacity utilization and margins. Meanwhile, the rating draws comfort from grace period and staggered repayment structure of Sukuk, wherein cash flows are expected to improve post integration of new plant.
For more information, contact:
Hammad Rashid
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