November 20, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Bestway Cement Limited at ‘AA-’ for long term and ‘A1+’ for short term. The outlook forecast on these ratings is ‘stable’.
According to the rating agency, the ratings reflect the company’s leading position in the market emanating from its highest market share (19.7%).
Furthermore, the ratings are dependent on upholding of company’s leading market position along with sustenance of business volumes and margins.
The Company's recent brown field expansion and successful mergers in the past helped company to maintain its position.
Despite the sharp decline witnessed in margins, industry wide, on account of international coal prices and relevant duties, increase in FED and dip in cement prices, the company managed to depict good margins.
The company’s ratings are further strengthened by the sustainable dividend income from its strategic investment in United Bank Limited (UBL) in which company is holding 7.68%.
