JCR-VIS Credit Rating Company Ltd (JCR-VIS) has reaffirmed the entity ratings of Hascol Petroleum Limited (HPL) at 'A + / A-1' (Single A Plus/A-One). Rating of HPL's secured Sukuk issue of Rs 2 billion has also been reaffirmed at AA- (Double A minus). Outlook on the assigned ratings is 'Stable'.
The ratings assigned to HPL reflect its growing market share, adequate financial risk profile and improving corporate governance framework. Aggressive market share acquisition strategy is planned to continue with HPL targeting to become the second largest player in the sector with a 15 percent market share by 2020. Moreover, HPL has continued to pursue expansion in its storage capacities and retail outlets. Ratings also take into account the induction of Vitol Dubai Limited (Vitol) acquiring 15 percent stake in the company which will facilitate the company in securing and ensuring the smooth supply of petroleum products and hedging its procurement risk.-PR
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