May 22, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Pakistan Services Limited at ‘A+’ for long-term and ‘A1’ for short-term. The outlook for the ratings has been termed ‘stable’.
According to the report issued by PACRA, the ratings reflect the Company’s strong position in the hospitality industry as the market leader drawing comfort from its association with Hashoo Group.
The Company has witnessed growth over the years (in line with Industry dynamics) amid improving security conditions and progression of CPEC with stable margins. However, ongoing geopolitical scenario coupled with slowdown in domestic economic activity has impacted the Company's revenues and profitability through 9MFY19.
Ratings are dependent on effective implementation of envisaged strategy while maintaining modest leveraging and strengthening coverages. Any significant delay in commencement of new projects and/or further deterioration in margins leading to lower coverages and liquidity will have a negative impact on ratings. Meanwhile, maintaining sufficient liquidity for debt repayment remains critical.
