The Pakistan Credit Rating Agency Limited
27-Nov-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Aug-23
Related Research
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PACRA withdraws the Rating of Mughal Iron & Steel Industries Limited | PP Sukuk | PKR 5bln | TBI
| Rating Type | Debt Instrument | |
|
Current (27-Nov-23 ) |
Previous (25-Jan-23 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | AA- |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
PACRA has assigned a preliminary rating to Mughal Iron & Steel Industries Limited | PP Sukuk | PKR 5bln | TBI in Jan'2022. The Mughal Iron & Steel Industries Limited was intended to issue a Listed, Secured & Privately Placed Long Term Islamic Certificates (Sukuk) up to PKR 5Bln. However, given the unpretending economic conditions and high-interest rate environment during CY22 and 1HCY23, the bond was not issued within the stipulated timeline. Now the management does not want to continue the rating. Subsequent to the management decision, PACRA is withdrawing the Sukuk rating with effect from 27th Nov'2023.
About
the Entity
Mughal Iron & Steel Industries Limited (Mughal), is a public limited company incorporated in 2010, is primarily engaged in the manufacturing and sale of billets, girders, and rebars. The Company has also expanded its product base in recent years, by entering in non-ferrous segment. Mughal operates with a melting capacity of 500,000M.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 on the execution lead as CEO and the driving force behind the Company. Other senior tier management is associated with the company for a fairly long period of time. Diversified skill set and experience of multiple years reflected from member's profile, contribute to strong foot printing of the Company in the market.