The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (26-January-2005)
    PACRA Upgrades The Rating Of TFC Of Maple Leaf Cement Factory Limited
 

 
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 upgraded the rating of the secured TFCs of PKR 250mln of Maple Leaf Cement Factory Limited to ‘A+' (Single A Plus). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The rating reflects the healthy internal cash generation on the back of significant improvement in profitability. The rating also takes into account the planned right and preference shares issues, which are expected to substantially improve the financial structure of the entity over the remaining tenor of TFCs.

About the TFC Issue: TFCs of PKR 250mln were issued in Jul 02 to meet the cost of a new coal grinding system. The tenor of the instrument is four years and the profit rate is five years' PIB rate + 250bps subject to a floor of 15.25% and a ceiling of 17.75%. While the profit is payable semi-annually, the redemption of the principal is in six equal installments commencing in Jan 04. The issue is secured by way of a first pari passu charge on the present and future fixed assets (excluding land and buildings) of the company.

About the company: Maple Leaf Cement Factory Limited (MLCFL) is one of the largest cement factories in Pakistan , with an overall annual production capacity of around 1.5mln tons. The company has a diversified product range and is the only cement company in Pakistan capable of producing grey, white, sulphate resisting and low alkali cement.

MLCFL is a part of the Kohinoor Maple Leaf Group, which is one of the leading textile manufacturers of the country. Kohinoor Textile Mills Limited holds 50.13% shareholding in MLCFL. While effectively family controlled, MLCFL is run by professional management. The main sponsor, who is also the chief executive of the company is a leading industrialist. Presently, he is chairman of the group and mainly responsible for making policy decisions and giving commercial guidelines.
 
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