November 22, 2018 (MLN): JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of ‘AA/A-1+’ (Double A /A-One Plus) to Thal Limited (THAL). Outlook on the assigned rating is ‘stable’.
According to the rating agency, the long-term rating of ‘AA’ signifies high credit quality and strong protection factors.
While, the short-term rating of ‘A-1+’ signifies highest certainty of timely payment; Short term liquidity, including internal operating factors and /or access to alternative sources of funds.
The assigned ratings take into account conservative financial policy of the company as reflected by healthy liquidity, prudent dividend payout history and very low projected levels of debt, if any, over the rating horizon despite significant investments being undertaken by the company.
As per JCR-VIS, the ratings factor in established track record with more than two decades of experience, dominant market share (in flagship products) and technical collaborations with international players in the automotive components business.
Ratings also incorporate sound corporate governance infrastructure along with THAL’s association with House of Habib, an established conglomerate with presence in automobile, building materials, packaging, plastics and financial services.
Going forward, ratings are dependent on achieving projected revenue growth and cash flows, maintaining prudent financial policies while further strengthening market position in key business segments.
