March 29, 2019: VIS Credit Rating Company Limited has upgraded the entity ratings of Pan Asia Food Products (Private) Limited from triple B/A-Two to triple B Plus/A-Two. The outlook on the assigned ratings is stable.

The assigned ratings draw comfort from the commitment that no long term debt would be undertaken by the company and short term borrowings and trade payable in relation to net sales would be maintained at prudent levels over the rating horizon.

Ratings also reflect adequate financial risk profile of the company as indicated by moderate capitalization and liquidity indicators. The ratings are, however, constrained by high business risk profile of the edible oil industry; room for improvement also exists in the product mix and governance structure of the company.

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