The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (14-September-2006)
   

PACRA Maintains Ratings of
National Refinery Limited (NRL)

 

 
Analyst
Maimoon Rasheed
(+92-42-586 9504)
maimoon@pacra.com

 

 

 









 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and the short-term entity ratings of National Refinery Limited (NRL) at “AAA” (Triple A) and “A1+” (A One Plus), respectively. The ratings denote the lowest expectation of credit risk emanating from exceptionally strong capacity for timely payments of financial commitments.

The ratings reflect NRL’s sustained dominant market position being the only refining complex in the country with both lube and fuel operations. The ratings also recognize the company’s higher operational flexibility, which is critical in the changing market dynamics. This is evident from NRL’s ability to keep the margins largely insulated from the cyclicality of the refining industry. The ratings also factor in the company’s very strong financial profile emanating from a debt free capital structure and robust liquidity. Meanwhile, the profit retention policy has enhanced the risk absorption capacity of the company and this provides a cushion against any unforeseen contingencies. The benefits accruing to the company from its association with the only fully integrated group in the petroleum sector of the country is also a key-rating factor.

About the Company: NRL, incorporated as a public limited company in 1963, was taken over by the government of Pakistan (GoP) under the Economic reforms Order, 1972. As a result of GoP’s privatization process, Attock Group through its companies – Pakistan Oilfields Limited, Attock Refinery Limited and Attock Petroleum Limited – acquired majority shareholding (51%) of NRL and the management control was transferred in July 2005. The new Chief Executive, Mr. Shuaib A. Malik, having extensive experience in both upstream and downstream segments of oil business, has been associated with the Attock Group for over two decades.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
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