PACRA ASSIGNS RATINGS TO

LEGLER NAFEES DENIM MILLS LIMITED

 

Lahore: September 20, 2003

The Pakistan Credit Rating Agency (PACRA) has assigned a long-term entity rating of "A-" (Single A Minus) and a short-term rating of "A2" (A Two) to Legler Nafees Denim Mills Limited (LNDM). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The ratings reflect the strong capacity of LNDM to meet its financial obligations, arising from a sustained improvement in performance, stability of earnings and a higher risk absorption capacity owing to the enhanced equity base. The ratings take into account the exposure of LNDM to a moderate level of business risk emanating from the inherent volatility in input and output prices. The ratings also consider the company's competitive edge on the strength of its unique product and customer base, and increased focus on value-addition.