PACRA MAINTAINS THE RATING OF TFC ISSUE OF

GATRON INDUSTRIES LIMITED

 

Lahore: May 14, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the assigned rating of "A+" (Single A Plus) for the secured TFC of PKR 274 mln of Gatron Industries Limited (GIL). This rating denotes a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

GIL has been able to sustain its market leadership through established reputation for quality, diversified product range and the benefit of economies of scale. Strong cash flows, conservative capital structure and continuing sponsor support are GIL's added strengths. The potential risk factors are the cyclical nature of its products - with inputs and outputs exposed to international price fluctuations - and future government policy regarding the level of tariff protection for the industry. These strengths and concerns are reflected in our rating.