Lahore, December 29, 2017 (PPI-OT):The ratings reflect the strength of ownership structure of the company: EEAP is a wholly owned subsidiary of Engro Corp (rated AA by PACRA). The CEO of Engro Corp is also the CEO/Chairman of EEAP. Ratings take comfort from the strong corporate governance framework of the group. The company accumulated huge losses in the past – now recovery is taking place. The company is expected to breakeven. The equity base is also expected to take advantage from ensuring profits and reversal of impairment. The financial risk profile is adequately covered.
The ratings are dependant upon the maintained business volume and recovery from losses. Adherence to sound financial discipline while strengthening debt servicing capacity through improving cash position is vital 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