Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Entity Ratings of Hassan Ali Rice Export Company
Rating Type | Entity | |
Current (27-Dec-18 ) |
Previous (27-Jun-18 ) |
|
Action | Maintain | Maintain |
Long Term | BBB | BBB |
Short Term | A2 | A2 |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating incorporates strength of the sponsors of Hassan Ali Rice as reflected in the
business structure of the group (Hashwani Group of Companies) and overall growing principles of the business. Hassan Ali Rice has maintained its position as a big player over the years, primarily focused on export market, with customers expanding over multiple countries. In line with the industry, Hassan Ali Rice also benefitted from the astounding performance of country’s rice segment attributed by ban of Indian Rice that eventually helped rice players improve their margins. The company has no long term debt on its book. The Working Capital borrowing are aligned to business cycle, though timely repayment from the client is crucial to settle the obligations. Hassan Ali Rice is a sole proprietorship hence, the room for improvement in governance structure is significant.
The ratings are dependant upon the maintained business volume and profitability. Adherence to sound financial discipline while strengthening debt servicing capacity (cash overages) is vital for the rating.
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