PACRA MAINTAINS TFC RATINGS OF

PAKISTAN PTA LIMITED (PPTA)

 

Lahore: July 21, 2003

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

The ratings are primarily based on the comfort drawn from ICI Pakistan's guarantee of PPTA's TFC obligations, as PPTA's cash flows are not sufficient to fully meet its debt liabilities. Meanwhile, continuing availability of group support in the form of new loans to replace expensive local medium-term borrowings, and the effective debt/equity swap undertaken in September 2002 through the rights share issue, have improved the financial structure of the company resulting in a substantial reduction in the financial charges.