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The Pakistan Credit Rating Agency Limited
Press Release
Date
19-Jan-23

Analyst
Faiqa Qamar
faiqa.qamar@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 Withdraws Entity Ratings of Pak Arab Fertilizers Limited

Rating Type Entity
Current
(19-Jan-23 ) 		Previous
(25-Jan-22 )
Action Withdraw Maintain
Long Term - A-
Short Term - A2
Outlook Developing
Rating Watch - -

Pak Arab Fertilizer Ltd. ('Pak Arab' or 'the Company') is in the process of merging with and into its associate company, Fatima Fertilizer Company Ltd. (FFC), w.e.f. 1-Jul-22, as per PSX Notice dated 5-Dec-22. Furthermore, the Company has already paid off the long-term loans and PPTFC. Post-merger, the Company will effectively dissolve, and all operational proceeds will become part of FFC. Therefore, the management intends to discontinue the entity rating of Pak Arab.
PACRA withdraws the entity ratings of Pak Arab Fertilizer Ltd. with immediate effect.

About the Entity
Pak Arab Fertilizers Limited ('Pak Arab' or 'the Company') is a Public Unlisted Company. The Company engaged in importing and trading DAP, manufacturing and selling Liquid Carbon Dioxide (LCO2), along with providing Operations & Maintenance services. The Company's LCO2 plant is located at Sadiqabad, within the premises of Fatima Fertilizer, and has a production capacity of 192MT/per day. Pak Arab is owned by Arif Habib Group (~50%), Fatima Group (~41%), and Fazal Group (~9%). The Company's Board is chaired by Mr. Arif Habib. While Mr. Fawad Ahmed Mukhtar heads the Company as its CEO. He is aided by a team of experienced professionals.

About the Instrument
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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.