VIS Rating Co. Assigns IR To MISIL

VIS Credit Rating Company Limited has assigned the initial entity ratings of single A/A-Two to Mughal Iron and Steel Industries Limited. The medium to long-term rating of 'A' denotes good credit quality coupled with adequate protection factors

KARACHI, (UrduPoint / Pakistan Point News - 25th Sep, 2020 ) :VIS Credit Rating Company Limited has assigned the initial entity ratings of single A/A-Two to Mughal Iron and Steel Industries Limited. The medium to long-term rating of 'A' denotes good credit quality coupled with adequate protection factors.

The risk factors may vary with possible changes in the economy. The short-term rating of 'A-2' denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned rating is stable, said a press release on Friday.

MISIL is considered one of the major players in the long steel sector of Pakistan. Product portfolio of the company comprises steel rebars, girders and t-iron.

Steel rebars and girders are the key revenue generating products.

The assigned ratings take into account extensive experience of sponsoring family who has been involved in the steel sector since 1950. The ratings draw comfort from sizeable scale of melting and re-rolling mill capacities, underpinned by installation of two new furnaces and completion of balancing, modernization and replacement (BMR) of existing re-rolling mill in 4Q2020.

The company exhibited healthy increase in revenue and profits in the past few years, slowdown in economic activity and outbreak of COVID-19 has adversely affected financial performance during last nine months of fiscal year 2019-20.