VIS Credit Rating Co Reaffirms ER Of Olympia Oils

VIS Credit Rating Co reaffirms ER of Olympia Oils

VIS Credit Rating Company Limited has reaffirmed the entity ratings of Olympia Oils (Pvt.) Limited at triple B Plus/A-2

KARACHI, (UrduPoint / Pakistan Point News - 18th Sep, 2020 ) :VIS Credit Rating Company Limited has reaffirmed the entity ratings of Olympia Oils (Pvt.) Limited at triple B Plus/A-2.

The medium to long-term rating of 'BBB+' denotes adequate credit quality with reasonable protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of 'A-2' denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is stable.

The previous rating action was announced on May 31, 2019, said release on Friday.

`Olympia Oils is primarily engaged in the production and sales of edible oil and oil meal using solvent extraction process.

It is the flagship company of a diversified industrial conglomerate "Monnoo Group" having business interests in textile, carpets, chemicals, synthetics, and poultry. The ratings draw strength from moderate business risk profile based on majority sales to institutional clients thereby avoiding competition from mainstream branded oil market. The ratings also incorporate lower demand risk of oil meal due to vertical integration with group owned feed mills which utilize around half of production output.