The Pakistan Credit Rating Agency Limited
03-May-24
Analyst
Ali Arslan Malik
Ali.Arslan@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jul-23
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Dec-23
Related Research
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PACRA Withdraws the Ratings of Mughal Iron & Steel Industries Limited | PPCP | PKR 2bln | Apr-23 | Redeemed
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | PPCP |
| Amount | PKR 2000 mln |
| Issuance Date | 06-Apr-23 |
| Tenor | 0.75 Years |
| Redemption Date | 01-Jan-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (03-May-24 ) |
Previous (06-Nov-23 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited issued a Rated, Unsecured, Privately Placed Short Term Conventional Commercial Paper (CP) of PKR 2,000mln at face value to finance the Company’s working capital requirements on 06-Apr-23. The tenor of the instrument was 9 months and carried a profit rate of 6MK+150bps. The instrument has been repaid, and hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The instrument has been redeemed on 01-Jan-24.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Mughal Iron & Steel Industries Limited | PPCP | PKR 2bln | Apr-23.
About
the Entity
Mughal Iron & Steel Industries Limited (Mughal), is a public limited company incorporated in 2010 and is primarily engaged in the manufacturing and sale of billets, girders, and rebars. The Company has expanded its product base, by entering the non-ferrous segment. Mughal operates with a melting capacity of 590,000M.T., rerolling capacity of 630,000M.T., and non-ferrous recycling capacity of 90,000M.T. Currently, a nine-member BoD is monitoring the overall functioning under the chairmanship of Mr. Mirza Javed Iqbal. Mr. Khurram Javaid is the execution lead as CEO and the driving force behind the Company.