VIS Assigns Positive Outlook To ER Of Ittehad Chemicals Limited

VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Ittehad Chemicals Limited at single A minus/A-Two)

KARACHI, (UrduPoint / Pakistan Point News - 26th Aug, 2019 ) :VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Ittehad Chemicals Limited at single A minus/A-Two).

The outlook on the assigned ratings has been revised from stable to positive. The medium to long-term rating of "A-" signifies good credit quality with strong protection factors. Moreover, risk factors may vary with possible changes in economy, said press release on Monday.

The short-term rating of "A-2" denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. The previous rating action was announced on January 25, 2018.

The revision in the outlook reflects the expected efficiencies and revenue generation emanating from technological modernization.

The ratings assigned to ICL take into account its prominent and stable position in chlor-alkali sector.

The ratings derive strength from positive impetus in profitability supported by volumetric growth in sales along with improvement in gross margins. The ratings draw comfort from adequate coverages and comfortable gearing levels.

Further, improvement in production related operational efficiencies anddiversification in revenue stream to curtail the impact of increased power and finance cost are conducive to the assigned ratings. Ratings are dependent upon achievement of projected topline growth in turn increasing profitability and leading to strengthening of capitalization and leverage indicators.