The Pakistan Credit Rating Agency (Pacra) has upgraded the rating of the secured TFCs worth Rs 250 million of Maple Leaf Cement Factory Limited to 'A+' (single A plus). According to a press release issued by Pacra, the rating denotes a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.
The rating reflects the healthy internal cash generation on the back of significant improvement in profitability. The rating also takes into account the planned right and preference shares issues, which are expected to substantially improve the financial structure of the entity over the remaining tenor of TFCs. TFCs of Rs 250 million were issued in July, 2002 to meet the cost of a new coal grinding system.
The tenor of the instrument is four years and the profit rate is five years' PIB rate + 250 bps subject to a floor of 15.25 percent and a ceiling of 17.75 percent. While the profit if payable semi-annually, the redemption of the principal is in six equal instalments commencing in January 2004.
TELECARD TFCS: JCR-VIS Credit Rating Company Limited has assigned final medium- to long-term rating of A (single A) to the proposed TFCs of Rs 2,400 million to be issued by Telecard Limited after examination of the signed legal documents, a press release said. The outlook on the TFCs rating is stable.-PR
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