VIS Assigns IER To CBM Plastics Ltd

VIS Credit Rating Company Limited has assigned Initial Entity Ratings (IER) of triple B Plus/ A Two to CBM Plastics (Private) Limited

KARACHI, (UrduPoint / Pakistan Point News - 13th Nov, 2019 ) :VIS Credit Rating Company Limited has assigned Initial Entity Ratings (IER) of triple B Plus/ A Two to CBM Plastics (Private) Limited.

The long term rating of "BBB+" signifies adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy.

The short term rating of "A-2" signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Outlook on the assigned ratings is stable, said a press release on Wednesday.

CBM Plastics company manufactures plastic containers (jerry cans and plastic drums) for packaging of lube oil, pesticides, food products and ethanol. The company has a diverse product portfolio, with products ranging from 50 ml to 250 liter containers. Since its incorporation in 1992, the company has been headed by Iftikhar Hussain.

The assigned ratings take into account CBM's stable profitability margins, wherein variation in raw material prices which mainly includes HDPE and exchange rate parity, is passed on to theclient.