November 16, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Askari Cement Limited at ‘A‘ for long term and ‘ A1’ for short term, revealed an official announcement by PACRA. The outlook forecast on these ratings is ‘stable’
The notice released by the company reveals that these ratings reflect Askari Cement’s sustained position in the cement industry.
“The Company has two existing cement manufacturing units (Nizampur and Wah) – operating with combined capacity of 2.8mln tpa. Over the last few years, the company was able to maintain growth trajectory trend in revenue, supported by strong cement sector fundamentals,” explains the agency.
The ratings are dependent on current positioning of the company’s business besides financial risk profile; strengthening of equity base is essential.
“Any significant deterioration in the sector’s outlook particularly any slowdown in economic growth, interest rate fluctuation and delay in infrastructure projects may affect the ratings,” said PACRA.
Askari Cement Limited (ACL) is an unlisted, public limited company incorporated in 1990. The Company is wholly owned subsidiary of Fauji Foundation and the production facilities are located in North region (Wah and Nizampur).
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