JCR-VIS assigns ratings to Askari Cement Limited

KARACHI: JCR-VIS Credit Rating Company Limited has assigned entity ratings of single A/A-One to Askari Cement Limited. Outlook on the assigned ratings is stable.

The assigned ratings incorporate strong sponsor profile of ACL which is a wholly owned subsidiary of Fauji Foundation one of the largest business conglomerates in the country. Strong probability of timely support from sponsors has been factored into the ratings, said press release on Monday.

Standalone ratings reflect adequate liquidity and profitability profile. However, ratings are constrained by current sector dynamics where sizeable capacities coming online and inability to pass on increasing raw material prices has impacted financial profile of industry players.

Moreover, company’s aggressive dividend payout policy which combined with sizeable debt funded expansion reflects an aggressive financial policy.