VIS Assigns Positive Outlook To ER Of Matco Foods

VIS Credit Rating Company Limited has maintained the entity ratings of Matco Foods Limited at single A-Minus/ A-Two.The outlook on the assigned ratings has been revised from stable to positive

KARACHI, (UrduPoint / Pakistan Point News - 10th Dec, 2019 ) :VIS Credit Rating Company Limited has maintained the entity ratings of Matco Foods Limited at single A-Minus/ A-Two.The outlook on the assigned ratings has been revised from stable to positive.

The long-term rating of 'A-' signifies good credit quality and adequate protection factors. Risk factors may vary with possible changes in the economy. The short-term rating of 'A-2' signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Previous rating action was announced on Nov. 15, 2018, said press release on Tuesday.

The revision in MFL's outlook takes into account positive rice sector dynamics, improved financial performance of MFL including more diversification.

In fiscal year 2018-19, Pakistani Basmati rice exports registered double digit growth on account of increased demand from the EU following the implementation of the pesticide residue regulations.

Further developments in the sector include expected addition of the Saudi Arabian market based on its implementation of pesticide residue regulations like the European Union, access to the Qatari market and growing demand from the Chinese market post Pak-China Free Trade Agreement. In view of the aforementioned developments, we expect industry growth to remain in double digits over the medium term horizon.