PACRA assigns entity ratings to Fatima Fertiliser

The Pakistan Credit Rating Agency (PACRA) has assigned a long-term entity rating of' 'A' (Single A) and short-term entity rating of 'A1' (A One) to Fatima Fertiliser Company Limited. These ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect Fatima Fertiliser's potential low business risk emanating from its entry into the fertiliser sector, mainly characterised by robust demand amidst domestic supply deficit. The company is setting up a fertiliser complex with a diversified product base, catering to growing demand for balanced fertilisation.
Fatima Fertiliser has an adequate risk management framework to achieve project completion within set targets, and onward smooth operations, wherein the company is benefiting from sponsors' experience of running arm established fertiliser plant. Nonetheless, some slippages are expected, though these would remain within the comfortable range. Meanwhile, the ratings also recognise Fatima Fertiliser's association with two strong sponsoring groups, which have continued with their support in the development phase.-PR