JCR-VIS Assigns Initial Ratings To Sheikhoo Sugar Mills

JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of single A-minus/A-two to Sheikhoo Sugar Mills Limited (SSML).

KARACHI, (UrduPoint / Pakistan Point News - 16th Oct, 2018 ) :JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of single A-minus/A-two to Sheikhoo Sugar Mills Limited (SSML).

According to a press release issued on Tuesday, the medium to long-term rating of 'A-' denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy.

The short-term rating of A-2 denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. The outlook on the assigned ratings is stable, it added.

SSML is a sugar manufacturing company located in the Southwestern Punjab. Shareholding of the company is vested with the sponsoring family, which owned Baksh Group of Companies in the early 1950s.

The assigned ratings take into account moderate business profile of the company, largely underpinned by ample experience of sponsors led management in the sugar sector, sizeable crushing operations, and strong business relationships with institutional customers. Planned steel billets manufacturing plant is expected to provide a cushion against cyclicality risk of sugar sector.