JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of double A minus/A-One to Mega Conglomerate (Private) Limited.
Outlook on the assigned ratings is stable. The ratings assigned to MCPL incorporate its strong sponsor profile and diversified operations and revenue streams, said press release on Wednesday.
Assessment of financial risk profile derives support from the company's low leveraged capital structure (adjusted for sizeable cash balances and term deposit receipts on a consolidated basis)
and adequate debt servicing ability, maintained through stable projected dividend stream from investments, significant cash flow of associated companies and sizeable liquidity on the balance sheet
of group companies and related parties.
Moreover, planned restructuring of existing debt on balance sheet is expected to result in sizeable cash accumulation over the rating horizon. Going forward, ratings are dependent on sound debt servicing
coverage, maintenance of leverage indicators in line with benchmarks for the assigned ratings and management undertaking planned improvements in corporate governance structure including strengthening of board
composition, oversight and management team along with implementation of comprehensive framework for monitoring performance of subsidiaries.