PACRA has assigned a long term entity rating of "A-" (Single A Minus) and short term rating of "A2" (A Two) to Pakistan Refinery Limited (PRL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. The ratings reflect the strength of the business profile of PRL emanating from sustainable operational history, its proximity to exporting/importing hub of the country, strong demand for its products and its strategic importance in the domestic context.
The ratings incorporate the company's ability to manage its exposure towards prevailing inter-corporate debt in the energy chain by favourably using commercial credit from domestic E&P companies. Herein, the company also gets benefits due to synergistic alliances with experienced and diversified sponsors. Nevertheless, the limited operational flexibility and relatively low margin product slate exposes the company to volatile dynamics of international crude oil and refined products pricing.-PR