December 13, 2018 (MLN): Pakistan Credit Rating Agency has maintained entity rating of Ghandhara Industries Limited at ‘A+’ for long-term and ‘A1’ for short-term, with a ‘stable’ outlook forecast.
According to the credit rating agency, the strength of the company is its alliance with ISUZU – a leading Japanese brand in the aforementioned segment. ISUZU has enabled the company to build a strong fortress in the competitive industry of Pakistan.
The volumes have been steadily rising – boosting the relative market share of GIL. The company has improved its ranking in the market and has recently launched its pickup range by the name of Isuzu D-Max.
The group has built synergies between the two companies operating in the same sector. The sponsoring group upholds good corporate governance standards. Their business acumen is further enriched by the group’s stake in the country’s leading tyre manufacturing company.
The ratings are dependent on upholding of the company’s business as well as financial risk profile. Two key elements are company’s stance on long term debt and working capital management. Moreover, management’s ability to sustain its market share while benefiting from positive demand fundamentals is crucial.
