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Habib Construction Services to secure new projects worth Rs.7 bln: PACRA

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April 22, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has upgraded the short term entity rating of Habib Construction Services Limited from ‘A3’ to ‘A2’ with a ‘stable’ outlook forecast.

The previous rating action was taken on January 18, 2019 where PACRA had downgraded the rating to ‘A3’ with a ‘Negative’ outlook forecast.

According to the agency, Habib Construction is in the process of securing new projects which are worth PKR 7 billion. Further, 43 km BOT project of tollway worth PKR 5.7 billion will be executed through subsidiary company – ensuring sustainable revenue stream for 25 years. This will ease off the pressure company suffered in previous year because of the economic conditions and slowdown in projects related activity.

The aforementioned ratings are dependent on sustaining a steady revenue stream and financial risk profile, apprised PACRA. Any prolonged downturn in subdued business volume can negatively affect the ratings. Good corporate governance practice is considered essential and adherence to debt related covenants and overall coverage matrix is essential to ratings.

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Posted on: 2019-04-22T13:40:00+05:00

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