PACRA MAINTAINS TFC RATINGS OF

PAKISTAN PTA LIMITED

 

Lahore: July 18, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the ratings of both the secured TFCs of Rs.348mln and Rs.1,600mln of Pakistan PTA Limited (PPTA) at 'A' (Single A). These ratings denote a low expectation of credit risk.

The ratings take into account continuation of ICI Pakistan's guarantee of PPTA's TFCs and local bank borrowings, which will be required by PPTA to meet the expected shortfall in the cash flows to be generated by the business. Meanwhile, group support in the form of additional funding, and effective debt/equity swap through the planned rights share issue are expected to improve the financial structure of the company with consequential reduction in the continuing burden of financial charges.