PESHAWAR: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Frontier Foundry Steel (Private) Limited (FFSPL) to “A/A-1” (Single A/A-One) from “A-/A-2” (Single A minus/A-Two). Outlook on the assigned ratings has been revised from “positive” to “stable”. According to a press release issued here no Tuesday, the medium to long-term rating of “A” denotes good credit quality coupled with adequate protection factors.
Moreover, risk factors may vary with possible changes in the economy. The short term rating of “A-1” indicated high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors and risk factors are minor.
The previous rating action was announced on August 25, 2020.
FFPSL is principally involved in manufacturing of billets and rebars with two plants situated in Peshawar and Lahore. Given the increase in steel demand mainly in the latter half of FY21 and company’s expansion of rebars at Peshawar plant, which also came online in FY21, topline grew notably in FY21.
The company is in process of further expansion - by way of vertical integration - mainly establishing a melting plant for making billets in its Lahore plant that is expected to be concluded by March 2022.
Copyright Business Recorder, 2021
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