The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (13-April-2005)
   

PACRA Maintains the Ratings of Sui Southern Gas Company Limited
 

 
Analyst
Arshad Arif
(+92-42-586 9504)
arif@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 credit ratings of TFCs of Sui Southern Gas Company Limited (SSGC) at ‘AA' (double A). This rating, applicable to TFC holders of the company, indicate a low expectation of credit risk and a very strong capacity for timely payment of financial commitments.

The TFC ratings reflect SSGC's inherently low financial and business risks. The low risk profile is a consequence of the GoP-guaranteed EBIT of 17% on its average operating fixed assets which continue to grow in pursuance of the planned capex. The ratings also take into account the maintained financial coverages and adequate liquidity.

About the TFCs Issue: The first tranche of PkR 666 mln and 2nd tranche of PkR 1,250 mln of the secured TFC with a shelf registration of PkR 3,000 mln are in issue. The tenor of TFC Tranche I and Tranche II is five years and the coupon rate is pegged to the SBP discount rate. While profit is payable semi-annually, principal redemption begins in the year 2003 and 2004 respectively.

About the company: Sui Southern Gas Company Limited (SSGC) was formed in 1989 as a result of a series of mergers. It continues to enjoy a monopoly in transmission and distribution of gas in its franchise area comprising Sind and Balochistan provinces. SSGC is catering to the gas requirements of over 1.7 million customers in power, domestic and industrial sectors. The government divested nearly 10% of the company through stock market in FY04.
 
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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