November 16, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of D.G. Khan Cement Company Limited at ‘AA-’ for long term and ‘A1+’ for short term. The outlook forecast for the ratings is ‘stable’.
According to the rating agency, DG Khan Cement’s ratings reflect company’s strong position in the cement industry emanating from its third highest market share in terms of capacity.
The ratings are dependent on upholding of the company’s business vis-à-vis financial risk profile. 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, the report added.
“Industry’s dynamics encompassing expected challenges of supply glut, substantial decline in local demand or deterioration in cement prices will negatively affect the ratings.”
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