The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (01-June-2005)
   

PACRA Maintains Ratings of Packages Limited
 

 
Analyst
Bano Sheikh
(+92-42-586 9504)
bano@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 maintained the long-term and short-term ratings of Packages Limited at ‘AA' (Double A) and ‘A1+' (A One Plus), respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payments of financial commitments and are applicable to the senior unsecured creditors of the company.

The ratings reflect the company's low risk profile, strengthened equity base, supplemented by substantial unrecognized appreciation in the value of its investment portfolio and the strong financial flexibility. The ratings recognize the company's leadership in the paper and board sector and also take into account the company's forward-looking strategy of continuous upgradation of production facilities for maintaining the company's competitive edge.

About the Company: Packages Limited (PL) was established in 1957, as a joint venture between Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and board into packaging material for the consumer industry. Packages Limited is a vertically integrated company having its own paper and paperboard mill. It is the only company in Pakistan having a complete range of packaging solutions including offset printed cartons, shipping containers, flexible packaging materials. The company is listed on all three stock exchanges. PL is a professionally managed market driven company and the strategy of continuous balancing modernization, replacement and expansion (BMR & E) has been the hallmark of its operations.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.