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The Pakistan Credit Rating Agency Limited
Press Release

Date
19-Dec-19

Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Hassan Ali Rice Export Company

Rating Type Entity
Current
(19-Dec-19 )
Previous
(27-Jun-19 )
Action Maintain Maintain
Long Term BBB BBB
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings incorporate strength of the Sponsors of Hassan Ali Rice as reflected in the business structure of the group (Hashwani Group of Companies) and overall governance principles of the business. With a prominent presence in the market, Hassan Ali Rice has upheld its position as one the biggest rice exporters of the country, with customers spreading over multiple countries. During FY19, the country’s rice industry observed a subtle growth, wherein rupee devaluation favored the rice exporters to enhance their revenue base. Similarly, following a topline centric approach, sales value of Hassan Ali Rice also grew tremendously by ~72% in FY19. Bottomline, however, remained thin owing to high operating costs. There is no long term debt on the books. Working Capital borrowings are aligned to the business cycle, whilst timely repayments remain crucial. Hassan Ali Rice is a sole proprietorship hence, room for improvement in its Governance Structure continues to be significant.
The ratings are dependent upon sustenance in business volumes and growth in profitability margins. Meanwhile, adherence to sound financial discipline including debt servicing capacity, is vital for the ratings.

About the Entity
Hassan Ali Rice Export Company is a sole proprietorship established on June 15th, 1994. The company is engaged in processing and trading business of rice. Hassan Ali Rice is one of the largest exporters of rice in the domestic landscape. Hassan Ali Rice is one of the founding members of Rice Export Association (REAP). Mr. Abdullah Akbar Ali Hashwani heads the company’s operations along with his team

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 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.