September 2, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has assigned initial entity rating of ‘A-’ for long term to FatimaFert Limited while for short term rating is ‘A2’. The outlook forecasted on rating is ‘stable’.
As per an official press release by the agency, the rating reflects the strength of its sponsor i.e. Fatima Fertilizer Company Limited which offers the dynamic business layout with much financial flexibility.
PACRA further apprised in this document that FatimaFert’s plants were operational onwards September CY18 which contributed 5 % of country’s total urea production.
Company faced gas challenges which badly affected its financial profile despite of favourable demand and supply situation.
Keeping an eye on current scenario, a shrewd business acumen has been laid out as per which FatimaFert Limited is going to be merged in Fatima Fertilizers Company limited; approved by the board.
Moreover, the ratings are kept under 'Rating Watch' in anticipation of merger with Fatima Fertilizer Company Limited.
