KARACHI, May 30: JCR-VIS Credit Rating Company Limited Wednesday assigned initial entity ratings of triple B/A-Three to Habib Oil Mills Limited. Outlook on the assigned ratings is stable, said press release issued here on Wednesday.

HOM is involved in the manufacture and sale of vegetable banaspati, cooking oil and related products for over six decades.

The company is owned by the Hassan Family and based in Karachi. The assigned ratings incorporate established track record of sponsors in the edible oil business, strong market position, significant brand recognition of products, projected improvement in financial profile post expansion and favorable demand prospects for edible oil in the domestic market.

The ratings are, however, constrained by high business risk profile of the edible oil industry along with weak financial profile of HOM as reflected by high leverage and stressed liquidity indicators. (APP)