Pakistan Credit Rating Agency maintains the Entity Ratings of Packages Limited
Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Packages Limited at ‘AA’ (Double A) and ‘A1+’ (A One Plus) respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings reflect PL’s leading market position in local paperboard, packaging and tissue industry mainly emanating from its established brand, efficient supply chain and long customer relationships. The company’s business profile draws comfort from increasing business volumes, mainly in paperboard and packaging segments, further supported by rising gross margins. This is expected to lead improvement in overall capacity utilization, though energy shortage and fluctuation in cost and availability of raw material remain key challenges. The company is facing competition in establishing its foothold in paper segment. Nevertheless, financial profile is supported by low leveraged capital structure, improving cash flows from core business, and a stable dividend stream from its sound investment portfolio.
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