VIS Revises Ratings Of SFPL

VIS Credit Rating Company Limited has revised the entity ratings of Shakarganj Food Products Limited from single A-minus/A-two to triple B plus/A-three

KARACHI, (UrduPoint / Pakistan Point News - 23rd Nov, 2020 ):VIS Credit Rating Company Limited has revised the entity ratings of Shakarganj Food Products Limited from single A-minus/A-two to triple B plus/A-three.

The medium to long-term rating of 'BBB+'denotes adequate credit quality coupled with reasonable protection factors. Moreover, risk factors are considered variable if changes occur in the economy. The short-term rating of 'A-3' denotes timely payment of obligations coupled with satisfactory company fundamental and liquidity factors, said release here on Monday.

VIS has also revised the instrument rating from 'A' single A to 'BBB+' triple B plus. The instrument rating has been equated with the medium to long-term entity rating due to restructuring arrangement under the purview of relief package announced by SBP and SECP, whereby the principal repayment has been deferred by one year.

Outlook on the assigned ratings has been revised from stable' to negative. Previous rating action was announced on July 18, 2019.

The ratings assigned are underpinned by the sponsor profile, comprising renowned business concerns, particularly BankIslami Pakistan Limited � also a related party. Business risk profile of the company is considered moderate on account of increasing competition in value-added dairy and challenging operating environment of the organized dairy segment, leading to range bound margins. Moreover, the industry margins remain sensitive to exchange rate risk and price risk pertaining to imported skimmed milk powder and edible oils.