Short-term Entity Rating of National Foods Limited to A-1

Karachi, June 25, 2012 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has maintained the medium to long term entity rating of National Foods Ltd. (NFL) at ‘A+’ (Single A Plus) with Stable Outlook. Short term rating of NFL has been upgraded from ‘A-2’ (A-Two) to ‘A-1’ (A-One).

The rating action takes into account improvement in liquidity position of the company. On the back of higher Funds from Operations, the company has gradually retired most of its outstanding debt. There is also enhanced focus on working capital management. On account of this, debt servicing capacity stands improved.

NFL has been able to post impressive bottom line results on the back of increased turnover and improved margins. The company has focused on the integration of functions in order to maximize operating efficiencies. Going forward, the company has set aggressive sales growth targets.

This would require capital expenditure, which is mostly stated to be met through internal cash generation. In addition to having strong foothold in the local market, the company is also looking to expand its brand presence in the overseas markets.

For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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