Lahore (API') – Pakistan Credit Rating Agency (I'ACRA) has assigned the long-term rating of A+ (Single A plus) and short-term rating of A1 (A One) to Pak-American Fertilizers Limited (PAFL).
According to PACRA analysts, the ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. The ratings reflect the relatively low business risk profile of the company emanating from growing demand for fertilizers amidst the continuing domestic supply deficit.
Subsequent to acquisition, the new management has initiated a number of efficiency measures that are expected to improve cost efficiency. This, in turn, is likely to enhance margins, which are already protected given the advantage of committed subsidy on feedstock pricing till 2009.
Meanwhile, PACRA has upgraded the long-term rating to A+ (Single A plus) while maintaining the short-term rating at A1 (AOne) of Azgard Nine Limited (ANL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
