PACRA ASSIGNS LONG-TERM CREDIT RATING OF 'A'

TO NISHAT MILLS LIMITED (NML)

 

Lahore: April 21, 2003

 

The Pakistan Credit Rating Agency (PACRA) has assigned long-term and short-term Credit Ratings of 'A' (Single A) and 'A1' (A one), respectively to Nishat Mills Limited (NML). The rating of the secured TFCs has been maintained at 'A+' (Single A Plus). The entity ratings are applicable to the senior unsecured creditors of the company. These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

NML's ratings reflect its strong capacity to meet financial obligations, arising from stable core earnings despite a difficult operating environment and also a relatively strong capacity to raise external funds. The ratings also consider the company's competitive edge on the strength of its diverse product and customer base, increased focus on value-addition and superior customer relations. NML is well positioned to meet future competition owing to the expected improvement in operating efficiency consequent to the substantial capex incurred on BMRE.