Reliance International assigned ratings of ‘BB’ due to its growing rice exports: PACRA

February 19, 2019 (MLN): Pakistan Credit Rating Agency has assigned initial entity ratings to Reliance International Commodities Export at ‘BB’ for long-term and ‘B’ for short-term, with a stable outlook forecast.

The ratings reflect emergence of the Reliance International Commodity Exports (''Reliance'') as a growing IRRI rice exporter.

In line with the overall industry changing trend, Reliance has shifted its export sales mix from China to African countries in the recent past. This has reaped better top-line growth but has also enlarged its cash conversion cycle.

Reliance has marked its presence in African regions through two distribution entities and is committed to increase its foreign footing. Presence in local market remains indifferent.

The ratings are dependent on Reliance's ability to sustain business profile and yield better profit margins. Meanwhile, prudent working capital management is imperative.

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