November 13, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has assigned initial entity ratings of ‘BBB’ for long term and ‘A2’ for short term, to Noon Sugar Mills Limited. The outlook forecast for the ratings is ‘stable’.
According to a formal statement issued by PACRA, the ratings reflect Noon Sugar Mills Limited’s (Noon Sugar) diverse revenue stream, which in addition to the sale of sugar and ensuing by-products, is augmented by ethanol sales.
“The margins in the sugar industry have been depressed lately. However, the Company is able to maintain adequate margins owing to improved sucrose recovery and better ethanol margins,” acknowledged the agency.
The Company turned around its operations under new management in the last two years and is undertaking several steps to improve its efficiency through BMR and expansion in ethanol capacity.
The press release on the matter, further revealed that the ratings are dependent on the management’s ability to reduce leveraging and improve working capital management, while maintaining profitability.
Noon Sugar Mills was incorporated in 1964 as a public limited company, with its shares listed on the Pakistan Stock Exchange (PSX). The primary business of the Company is manufacturing and sale of white refined sugar and Ethanol.
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