PACRA UPGRADES RATINGS OF

LEGLER NAFEES DENIM MILLS LIMITED

 

Lahore: April 01, 2004

The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Legler Nafees Denim Mills Limited (LNDM) to “A” (Single A ) and the short-term rating has been upgraded to “A1” (A One). The ratings have also been assigned a positive outlook. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The ratings reflect the company's improving performance and risk absorption capacity through the ongoing conservative profit retention policy. The ratings also reflect, inter-alia, the future prospects arising from the company's transition from a commodity to specialty producer. This, coupled with certain other strategic plans, is expected to enhance LNDM's international competitive position.