December 10, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity rating of National Refinery Limited at ‘AA+’ for Long-term and ‘A1+’ for Short-term, with a stable outlook forecast.
According to the press release issued by PACRA, the rating incorporates NRL’s association with only integrated oil group – Attock Group (AG).
The ratings are also dependent upon the sustained market position of the company, herein continuous growth in revenue is important. Prudent management of financial matrix while keeping optimal capital structure would remain critical. A prolonged downturn in gross profit thereby translating in significantly lower cash flows would impact the ratings.
The company predominantly financed its upgradation projects, including desulphurization unit and ISOM, through internally generated funds; capitalized in Jun’17 and Oct’17, respectively. This translated into accelerated growth in topline FY18.
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