The Pakistan Credit Rating Agency Limited
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Raniya Tanawar

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PACRA Maintains Entity Ratings of Hassan Ali Rice Export Company

Rating Type Entity
(27-Jun-19 )
(27-Dec-18 )
Action Maintain Maintain
Long Term BBB BBB
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings incorporate 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. Hassan Ali Rice has sustained its position, both at top line and bottom line level. 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 continue to be 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

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.