The Pakistan Credit Rating Agency (Pacra) has assigned 'A+' (Single A plus) rating to the proposed privately placed secured term finance certificate (TFC) issue of Rs 750 million including green shoe option of Rs 250 million by Al-Abbas Sugar Mills Limited (AASML).
The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The rating reflects the company's sound capital structure, operational efficiency and management quality. The rating also recognises diversification in the company's operations - sugar and distillery - that has helped to some extent in managing relatively high business risk, an inherent feature of the cyclical nature of sugar business.-PR