Shahmurad Sugar TFC rating retained

The Pakistan Credit Rating Agency (Pacra) has maintained the rating assigned to the secured TFC issue of Rs 200 million of Shahmurad Sugar Mills Limited (SSML) at ''BBB'' (Triple B).
The rating denotes low expectation of credit risk and adequate capacity for timely payment of financial commitments, the release of the rating agency said.
The rating assigned to SSML''s secured TFC recognises the company''s weakening capital structure and strained internally generated cash flows despite improving margins.
The rating also reflects the sponsors'' demonstrated financial support in times of stress as a critical mitigating factor.
With its business operations limited to sugar production, the company continues to be affected by the issues debilitating the industry.
Going forward, the commencement of distillery operations will add stability to the company''s income stream, rendering it less vulnerable to unfavourable changes in the economic climate, although the extent of this impact remains to be seen.