The Pakistan Credit Rating Agency (Pacra) has assigned a rating of "A+" (single A plus) to the proposed privately placed secured Sukuk of Rs 1,000 million by Pak Elektron Limited (PEL). This rating denotes a low expectation of credit risk emanating from strong capacity for timely payment of financial commitments.
The rating reflects PEL's diversified revenue sources that help in performance sustainability in a highly competitive operating environment. The rating also takes into account the company's well-conceived business strategy of maintaining revenue growth. Meanwhile, cognisant of changing market dynamics and intensifying competition, PEL has placed higher emphasis on product development, while focusing on product quality. Although the company is accumulating additional debt, gearing is likely to remain at existing levels due to augmentation in the equity base through the increasing trend in profitability.-PR