VIS Maintains ER Of Matco Foods
Umer Jamshaid Published January 07, 2021 | 08:00 PM
KARACHI, (UrduPoint / Pakistan Point News - 7th Jan, 2021 ) :VIS Credit Rating Company Limited has maintained the entity ratings of Matco Foods Limited at single A-minus/ A-two. Outlook on the assigned ratings has been revised from positive to stable.
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, said release on Thursday.
The segment where MFL operates, Hotels, Restaurants and Catering (HORECA), has been badly affected by the pandemic-related lockdown. Tourism related sales and demand has been affected, albeit there has been a surge in demand for home-based consumption, and retail market has seen a jump in demand as a result of stockpiling.
Nevertheless, demand side weakening has been noted, which has been factored into the outlook revision. The trend has also reflected in the country's export figures, with rice exports during Jul-Oct'20 declined by 29% and 21% in terms of value and volume respectively.