Lahore: The Pakistan Credit Rating Agency (PACRA) has assigned a long term entity rating of “A” (Single A) and short term rating of “A2″ (A Two) to Sapphire Fibres Limited (SFL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect SFL’s demonstrated ability to maintain its gross margin, predominantly through horizontal value-addition in its main business segment – spinning. Meanwhile, SFL has been investing significantly in balancing, modernizing and replacement over the last couple of years, which has resulted in more efficient production processes. The company has a diversified investment portfolio, providing a stable income stream to its bottom-line. At the same time, SFL’s strong risk absorption capacity, mainly emanating from its low leveraged capital structure, is a key rating factor.
The ratings are dependent on the company’s ability to sustain its steady growth without compromising its competitive positioning among its peers. Meanwhile, any adverse changes in the economic environment deteriorating its margins and putting its coverage’s under significant pressure would have negative impact upon 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