Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Fazal Cloth Mills Limited (FCML) at ‘A-’ (single A minus) and ‘A2′ (A Two), respectively.
These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect FCML’s improved profitability, emanating from favourable supply/demand equilibrium in the global market. The ratings continue to take support from the company’s seasoned management team, having sound understanding of the industry dynamics and quality support infrastructure.
Although the company’s leveraging is on rise to finance ongoing expansion in the spinning capacity and establishment of a weaving unit, relatively strong core cash flows are expected to keep this at a manageable level.
The ratings are dependent on the successful execution of the expansion projects within the expected timeline without major cost overruns. The ratings depend upon effective management of the company’s financial risk profile. In the meantime, continued competitiveness of the company through volatile global economic fundamentals remains important.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town, Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425