VIS Reaffirmed ER Of Ittehad Chemicals

VIS Credit Rating Company Limited has reaffirmed the entity ratings of Ittehad Chemicals Limited at single A minus/A-two with a 'Positive' outlook

KARACHI, (UrduPoint / Pakistan Point News - 25th Feb, 2022 ) :VIS Credit Rating Company Limited has reaffirmed the entity ratings of Ittehad Chemicals Limited at single A minus/A-two with a 'Positive' outlook. The medium to long-term rating of 'A-' signifies good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of 'A-2' denotes good certainty of timely payments coupled with sound liquidity and company fundamentals.The previous rating action was announced on Nov.19, 2020, said release on Friday.

The ratings assigned to ICL take into account its sizeable market in the Chlor-alkali sector and experience of sponsors in the industry.

The ratings are underpinned by moderate business risk profile manifested by sizable revenues in a highly competitive operating environment. Growth in topline is primarily backed by higher volumetric sales of Caustic Soda and Linear Alkylbenzene Sulphonic Acid (LABSA), a surface acting cleaning agent, in tandem with overall industrial growth in the country, with improvement in profit margins in the outgoing year.

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