May 31, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Attock Refinery Limited (ARL) at ‘AA’ for ‘long term’ and at ‘A1+’ for ‘short term’. The outlook forecasted on this rating action remains ‘stable’, as it was during the previous rating action on December 7, 2018.
According to PACRA, the ratings reflect ARL's very strong risk absorption capacity emanating from sizable equity base.
“The volatility in the oil prices coupled with deep depreciation in Pak Rupee against dollar led to negative profitability,” pointed out the agency in its press release on this occasion.
The Company’s association with the countries only integrated oil group – Attock Group (AG) – remains a source of comfort for the ratings.
Adding on, PACRA said that the ratings are also dependent on ARL's ability to effectively shield its business profile from volatility in international oil prices.