JCR-VIS assigns initial ratings to Chashma Sugar Mills

KARACHI: JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of triple B-plus/A-two to Chashma Sugar Mills Limited.

These medium to long-term rating denotes adequate credit quality with reasonable protection factors. Moreover, the risk factors may vary with possible changes in economy.

The short-term rating of A-two denotes good certainty of timely payment coupled with sound company fundamental and liquidity factors. Outlook on the assigned ratings is stable, a said press release on Friday.

The ratings assigned to CSML take into account its association with The Premier Group having business interests in sugar, high grade polypropylene, tableware and distribution of consumer goods and pharmaceuticals.

The ratings draw comfort from sizeable scale of operations and revenue diversification through forward integration in ethanol business providing an adequate cushion in withstanding the impact of cyclicality of sugar sector.

However, the ratings remained constrained on account of heightened financial risk owing to increased leverage indicators and weakening of debt coverage.