Lahore: The Pakistan Credit Rating Agency (PACRA) has assigned a preliminary rating of ‘AA’ (Double A) to the proposed 2nd Term Finance Certificates (TFCs) issue of PKR 3,000mln by Engro Corporation Limited (ECL). This rating denotes a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings reflect ECL’s articulated corporate centre mandate aimed at creating value in excess of the sum of its parts. The salient features of this mandate include development of a central pool of executive management capable of managing independent businesses, a focussed strategy-setting function, strengthening of the governance framework, and a comprehensive framework for monitoring the performance of subsidiaries. The ratings incorporate ECL’s diversified investment portfolio including a stable, indeed growing, fertilizer presence, wherein business risk is low. Although some of the company’s subsidiaries are currently in the growth phase, a sustained dividend stream from established enterprises supplements ECL’s financial profile.
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