Entity ratings to RRM assigned

The Pakistan Credit Rating Agency (Pacra) has assigned a long-term entity rating of "BBB+" (Triple B plus) and short-term rating of "A2" (A two) to Reem Rice Mills (Pvt) Limited (RRM). The rating denote low expectation of credit risk and adequate capacity for timely payment of financial commitments.
The ratings reflect RRM's sound financial profit emanating from its virtually debt free capital structure and association with financially strong business groups. RRM has shown subdued profitability in the past mainly due to limited scope of its operations. However, with its revised strategy of focusing on a larger universe of customers, the performance is expected to improve, going forward. Meanwhile, the company remains exposed to the cyclical nature of rice industry.-PR