Ratings Of FFCL Reaffirmed

VIS Credit Rating Company Limited has reaffirmed the entity ratings of Fatima Fertilizer Company Limited at double A minus /A-one

KARACHI, (UrduPoint / Pakistan Point News - 27th Aug, 2019 ) :VIS Credit Rating Company Limited has reaffirmed the entity ratings of Fatima Fertilizer Company Limited at double A minus /A-one.

The medium to long-term rating of `A1' denotes high credit quality coupled with strong protection factors. Moreover, risk factors may vary slightly with possible changes in the economy, said press release on Tuesday.

The short-term rating of `A-1' denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors.

Outlook on the assigned rating is stable. The previous rating action was announced on December 22, 2017.

The assigned ratings take into account strong sponsorship profile as majority of the shareholding of the company is held by Fatima Group and Arif Habib Group through their group companies and individual representatives.

The business risk profile of FATIMA is also underpinned by well-diversified product portfolio.

The company is involved in manufacturing and supply of urea, Nitrogen Phosphate, and Calcium Ammonium Nitrate fertilizers through a dealer network of 4,863 retailers in 61 districts of Pakistan.

The ratings also factor in positive earnings trajectory, improving cash flows generation, and decline in leverage indicators on a timeline basis.

The ratings draw comfort from access to concessionary gas, which provides a cushion against the increasing gas prices.