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The Pakistan Credit Rating Agency Limited
Press Release

Date
07-Nov-20

Analyst
Saadat Mirza
saadat.mirza@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 BBJ Pipe Industries Limited

Rating Type Entity
Current
(07-Nov-20)
Previous
(08-Nov-19)
Action Withdraw Maintain
Long Term - BBB-
Short Term - A3
Outlook Stable Stable
Rating Watch - -

Subsequent to the management's decision to discontinue the entity ratings of BBJ Pipe, PACRA withdraws the ratings of BBJ Pipe Industries Limited with immediate effect.

About the Entity
BBJ Pipe Industries Limited was incorporated in January 1991. The Company was converted into a public limited entity in 2013 under the company ordinance. It is primarily engaged in manufacturing of steel, iron and polyethylene pipe in several diameters range which are used in different government and private projects. The company is wholly owned by the sponsors - Zubair family. In FY18, The Company established a subsidiary 'BBJ Steel Limited', for one of it's product lines (HRC to CRC). The company has 99.88% ownership in the subsidiary.

The overall control of Company vests with three members' board of directors, wherein all members are from sponsoring family including the Chief Executive Officer. Mr. Zubair Qayyum, a mechanical engineer by profession, is the founding member of BBJ Pipe Industries limited. He is an Ex-Army official. Two board members, Mr. Zubair (CEO) and his son, Mr. Ahmed (COO), are equipped with necessary technical skills to manage and oversee the business.

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.