Lahore, November 26, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Ahmed Fine Textile Mills Limited (AFTML) at ‘A-’ (single A minus) and ‘A2′ (A Two), respectively. These ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong.
The ratings reflect AFTML’s ability to sustain its business profile, adequately supported by increase in business volumes and largely maintained profit margins. The company, benefiting from improving operational cash flows, repaid its maturing long term obligations, thereby rationalizing its financial risk. Reduction in leveraging has provided further comfort to the overall debt coverages. The ratings continue to recognize benefits of strong oversight of experienced management team reflected in efficient production process in terms of both quality and yield.
The ratings are dependent on the management’s ability to sustain its business margins, in turn, profitability. Meanwhile, any adverse changes impacting the company’s business profile and putting its cash-flows and coverages under significant pressure would have negative implications for the ratings.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425