PACRA MAINTAINS THE RATINGS

OF PACKAGES LIMITED

 

Lahore: July 17, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term ratings of Packages Limited at 'AA-' (Double A minus) and 'A1+' (A one plus), respectively. These ratings are applicable to senior unsecured creditors of the company and denote a very low expectation of credit risk and a very strong capacity for honoring financial commitments. The rating of Rs.850 mln unsecured perpetual TFC issue has also been maintained at 'AA-' (Double A minus).

While assigning the ratings, PACRA has recognized the potential improvement in the company's performance, which will lead to reduction in gearing, improvement in the financial coverages and liquidity of the company. Given a very low business risk and a demonstrated ability to show consistent improvement in its performance despite a difficult operating environment, the company is expected to maintain its financial strength.