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The Pakistan Credit Rating Agency Limited
Press Release

Date
31-Dec-18

Analyst
Muhammad Obaid
muhammad.obaid@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 Upgrades Entity Ratings of Kingcrete Builders

Rating Type Entity
Current
(31-Dec-18)
Previous
(30-Jun-18)
Action Upgrade Maintain
Long Term BB BB-
Short Term B B
Outlook Stable Stable
Rating Watch - -

Kingcrete Builders is a partnership – led primarily by the Minhas family. The firm has exhibited renewed energy ever since the induction of the second generation. The roles of the partners are clearly defined. Kingcrete Builders was originally focused on construction and building works but recently the firm is increasing its focus on real estate development. Projects are in pipeline though revenue is volatile and so are the profits. The financial profile is constrained by stuck-up receivables and sizeable debt. Timely recovery of receivables and repayment of debt is essential.
The latest financial results reflect improvement in the business position of the company, with adequate profitability. The pipeline of the projects in process and at hand is adequate and is expected to reflect positively on the future risk profile of the entity.
The ratings are dependent upon the corporate governance principles, internal control systems and financial strength of Kingcrete Builders. Adherence of sound financial discipline while improving working capital management and strengthening debt servicing capacity through improving cash position is pivotal for the ratings. Improving the topline and sustaining it is also vital.

About the Entity
Kingcrete was established in 1976 by the founder of the firm, Major (R) Nawaz A Minhas, a civil engineer by profession. Significant building projects to its credit are the 18 storey Navy Heights Karachi, Mall of Lahore in Cantt, DHA O/A Levels School in Karachi, ICI Office Buildings in Karachi, Naval Headquarters in Islamabad, Safari Villas in Bahria Town Rawalpindi, Hyperstar in Islamabad and Lahore, CMH Rawalpindi, and rehabilitation of Pearl Continental Hotels in Karachi, Rawalpindi and Lahore.
Kingcrete, as a partnership, doesn’t have a formal board of directors structure. The company is being run by the partners as they have their respective roles in the management of the firm.

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.