PACRA maintains Nimir Chemicals' ratings

September 17, 2025 (MLN): The Pakistan Credit Rating Agency Ltd (PACRA) has maintained the ratings for Nimir Chemical Pakistan Limited (PSX: NICL). The long-term rating remains at "A-" and the short-term rating at "A2", with a stable outlook.

In the first half of calendar year 2025 (1HCY25), Nimir Chemicals Pakistan Limited (NICL) experienced a significant 33.8% year-over-year decline in its topline, with a concurrent erosion of margins.

This downturn was driven by a combination of lower international prices, which reduced the selling prices of key products, and temporary plant shutdowns for repair and maintenance.

This rating shows NICL's established position within the domestic petrochemical industry, which manufactures products like Phthalic Anhydride (PA) and Di-Octyl Phthalate (DOP) that are critical to various downstream sectors.

The company's financial risk profile is deemed moderate, characterized by strained working capital management, weak cash flows, and a highly leveraged capital structure.

Looking ahead, management anticipates an improvement in operating performance, driven by efficiency gains from the replacement of plant catalysts and improved sales channels.

PACRA's stable outlook suggests confidence in NICL's ability to navigate industry challenges and pursue sustainable growth.

The company's future rating trajectory will depend on its capacity to maintain its market position, deliver on its projections, and manage volatility in global commodity prices.

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