Engro's Long Term Entity Rating Upgraded to AA+ by PACRA

As per disclosure of material information from Engro Corporation to members of the Pakistan Stock Exchange, Pakistan Credit Rating Agency Limited (PACRA) has upgraded its Long Term Entity Rating to AA+ (Double A Plus) from AA (Double A). Short term rating has been maintained at A1+.

As per the press release from PACRA attached with the notification, the ratings reflect Engro Corporation’s very strong risk profile and the fact that the holding company has re-aligned its strategic pillars from three (fertilizer, consumer goods and energy) to four i.e. agri-solutions, consumer, energy infrastructure and petrochemicals.

The press release also mentioned that Engro Corp’s existing portfolio has shown significant growth, while the firm has been operating at modest leverage with respect to its financial risk level. The upgraded rating also reflects Engro’s realignment of its organizational structure that allows it greater control over the strategic direction of its subsidiaries.

PACRA appreciates the positive structural adjustments that have been made to improve performance monitoring, HR deployment, strategy setting, and capital allocation and are confident in the company’s ability to execute its envisaged strategy of growth and expansion.

PSX notification on disclosure