December 10, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained rating of Maple Leaf Cement Factory Limited at ‘A+’ for Long-term and ‘A1’ for Short-term, with a stable outlook forecast.
As per the official press release issued by PACRA, the ratings reflect Maple Leaf’s strong business profile supplemented by sizable market share, recognized brand, and strong profitability.
“The promising investment in Maple Leaf Power (40MW coal based power plant) would assist company in reaping cost efficiencies”, the report added.
During FY18, industry margins witnessed decline due to low retention prices, fluctuating international coal prices and lately increased import duty on coal. Nevertheless, the company’s capacity utilization continued to stay at optimal level for existing capacity which abetted in company’s healthy topline and cashflows.
The ratings recognize the company's seasoned management team, having sound technical stature and quality support infrastructure. They are also dependent on upholding of company’s market position along with sustenance of business volumes and margins.
Company's long term debt repayment is important to improve financial risk matrix. The company's strong business performance in current stretched economic scenario – challenges on demand front – remains vital for ratings.
