The Pakistan Credit Rating Agency (Pacra) has assigned the long-term and short-term entity ratings of "BBB+" (triple B plus) and "A2" (A two), respectively, to Shakarganj Mills Limited (SML). These ratings denote a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.
The ratings reflect relatively high business risk of SML's operations, an outcome of cyclical nature of sugar industry. Nevertheless, the ratings recognise the management's ongoing efforts to reduce interdependency of various business segments - sugar, ethanol, and particleboard - to add stability to its core revenues, in turn, cash-flows.-PR