VIS Assigns IER To EMCO Industries

VIS Credit Rating Company Limited has assigned initial entity ratings of single A-minus /A-two to EMCO Industries Limited. The medium to long-term rating of 'A-' denotes good credit quality with adequate protection factors

KARACHI, (UrduPoint / Pakistan Point News - 27th Oct, 2020 ) :VIS Credit Rating Company Limited has assigned initial entity ratings of single A-minus /A-two to EMCO Industries Limited. The medium to long-term rating of 'A-' denotes good credit quality with adequate protection factors.

Moreover, risk factors may vary with possible changes in economy. The short-term rating of 'A-2' signifies good certainty of timely payment with sound liquidity and company fundamentals. Access to capital markets is good along with low risk factors. Outlook on the assigned ratings is stable, said release on Tuesday.

The ratings assigned to EMCO take into account the company's dominant market positioning entailing the production and supply of specialized products; high voltage porcelain insulators, used in the power sector, particularly in the transmission & distribution of electricity giving the company a strategic status in maintaining supply of power.

The products while carrying relatively low unit value have a dependency relationship with the limited buyers which has been built in the assigned rating. The ratings take note of the adequate financial risk profile on account of sizable margins, fair liquidity profile and adequate debt coverages.