PACRA Upgrades Rating of K.K. Rice Mills (Private) Limited

Lahore, March 01, 2019 (PPI-OT): The ratings capture the fresh injection of PKR ~ 175mln in the company as subordinated loan. The sponsor have expressed undertaking to keep the amount as such or convert it into paid-up capital. The ratings incorporate the improving market positioning of the company, also reflected from the recent reported numbers. In line with the industry, KK Rice Mills also benefited from the improved performance of country’s rice segment attributed by ban of Indian Rice that eventually helped rice players improve their margins.

KK Rice Mills has adopted a top-line centric approach targeting Middle East and the African region. The company is going through business expansion and the management expects to generate the maximum fruit of the expansion. Henceforth, another expansion comes into play as Company’s new plant is expected to be operational by March’19. Timely promotion of the product at the right price is essential. Compared to establish corporate, the board oversight and control environment are desirous of further improvement. The ratings are dependent upon the maintained business volume and profitability. Adherence to sound financial discipline while debt servicing capacity through cash position is vital for the ratings.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com