November 15, 2018 (MLN): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Matco Foods Limited (MFL) at ‘A-/A-2’ (Single A-Minus/ A-Two). Outlook on the assigned ratings is ‘Stable’.
According to the press release by JCR, the long-term rating of ‘A-’ signifies good credit quality and adequate protection factors. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment.
The assigned ratings factor in MFL’s position as one of the leading rice exporters in the country and efforts at cultivating its brand in the local market.
Ratings also incorporate the company’s adequate liquidity profile and improving capitalization levels post Initial Public Offering (IPO).
While rice business is susceptible to incidence of adverse climatic conditions and trade restrictions, MFL is geared towards brown rice which has sizeable demand in the European Union (EU) where Pakistani brown rice has witnessed growth following suspension of Indian rice exports to the region.
