The Pakistan Credit Rating Agency Limited
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Shayan Farooq

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PACRA Suspends Entity Ratings of Nizami Feeds (Pvt.) Limited

Rating Type Entity
Action Suspended Maintain
Long Term BBB- BBB-
Short Term A3 A3
Outlook Negative Negative
Rating Watch Yes Yes

PACRA has suspended the entity ratings of 'BBB-/A3' (Triple B-/A3) assigned to Nizami Feeds (Pvt.) Limited due to non-availability of requisite information. Once required information is available, PACRA would update the ratings after following the due process.

About the Entity
Nizami Feeds (Pvt.) Limited ventured in the import and trade of soybean meal, medical vaccines and poultry feed in local market in 2006 as a partnership. In 2010, the partnership was registered as a private limited company. Later, in 2016 the Company started manufacturing poultry feed. Currently, the Company deals in both poultry and animal feed. The production plant has an installed capacity of 131,400 MT per annum or 50 MT per hour.

The Company's shareholding vests with the sponsoring family. Mr. Mian Muhammad Ahmad Sethi, Mr. Mian Muhammad Tayyab and Mr. Mian Muhammad Hamza Nizami (brothers) own 47%, 42% and 8% shares, respectively. While, the remaining shares reside with the family members of late Mr. Mian Muhammad Abdul Rehman (4%). The Board's Chairman and the Company's CEO, Mr. Mian M. Ahmad Sethi, is assisted by a team of experienced professionals.

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.