PPI Original Text (PPI-OT) – Rating of Sukuk Issue of Amreli Steels Limited maintained

Lahore, May 10, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained rating of ‘A-’ (Single A Minus) of privately placed secured Sukuk of PKR 880mln by Amreli Steels Limited (ASL). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The rating reflects the established franchise of the company in re-bar manufacturing segment. The rating incorporates well-entrenched participation of Akberali Family – the major sponsor – in operations of the company.

Additionally, the sponsors have demonstrated financial commitment. The company has lately commissioned a billet manufacturing plant. This is expected to ensure raw material supply for core product – rebars, while gradually improving profit margins. With enhanced capacity utilization, generating additional operational cash flows, the financial profile of the company, though still weak, has started improving. The grace period of the sukuk has ended. However, the rating draws comfort from staggered repayment structure.

For more information, contact:
Hammad Rashid
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

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