Pakistan Credit Rating Agency Maintains Ratings of Hussain Mills Limited

Lahore, November 23, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Hussain Mills Limited (HML) 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 the company’s sustained business margins supported by consistent volumetric growth and efficient production process. The company’s leveraging has increased on YoY basis; however, comfort is drawn from the significant proportion of the self liquidating nature of working capital financing. Moreover, the financial risk is expected to remain manageable, as evident through the sponsors’ demonstrated support in the form of interest free loan. The ratings continue to recognize experienced management team having sound understanding of the industry dynamics and quality support infrastructure.

The ratings are dependent on the management’s ability to sustain its performance trends. Meanwhile, any deterioration in the company’s cash flows or debt structure without corresponding strengthening of coversges would have negative implications for the ratings.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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