The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (05-May-2005)
   

PACRA Assigns Short-Term Rating Of A2 To The Secured TFC Of PKR 203.6MLN Of Al-Noor Sugar Mills Limited (ANSML)
 

 
Analyst
Moin Khalid
(+92-42-586 9504)
moin@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 assigned the short-term rating of "A2" (A Two) to the secured TFC issue of PKR 203.6mln of Al-Noor Sugar Mills Limited, due for final redemption in October 2005. The rating denotes a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

The rating assigned to ANSML's secured TFC reflects the improving trend in overall performance and financial coverages, owing to the enhanced contribution from the main sugar operations. At the same time, the rating also recognizes the company's highly leveraged capital structure and strained liquidity position. The sponsors demonstrated support in times of high liquidity requirement remains a source of comfort to the TFC holders.

About the TFC Issue: ANSML issued a secured TFC of PKR 203.6mln in FY00 of a 5-year tenor, carrying a floating rate of SBP Discount Rate Plus 2.50% p.a. with a floor of 16.5% and a cap of 18.5%. The profit is payable on a semi-annual basis and principal in 8 semi-annual installments commencing from Apr 02. The TFC in issue is secured by way of exclusive first charge on the MDF Board Unit and a ranking charge on other assets of the company. Currently only one installment of the principal payable in Oct 05 is outstanding (principal amount: PKR 25mln).

About the company: Incorporated in 1969, Al-Noor Sugar Mills Limited (ANSML) is listed on the Karachi and Lahore Stock Exchanges. The company's plant is located at Shahpur Jahania, District Nawabshah, in upper Sind. ANSML is a member of the Al-Noor Group of Industries, which is engaged in the sugar, insurance and modaraba sectors along with commodities trading. The Ismail Zakaria family members and associates collectively hold 53.7% of the company's equity.

Apart from sugar production, ANSML also operates a Medium Density Fiber (MDF) board carrying the brand name of ‘ Lasani wood', which has emerged as a household name in construction material.
 
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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