VIS reaffirms ER of Sheikhoo Sugar Mills Ltd

• The medium to long-term rating of "A-" denotes good credit quality with adequate protection factors.
• The company's recent efforts towards creation of multifold revenue streams through establishment of steel billet manufacturing plant is expected to result in improved profitability.

KARACHI: VIS Credit Rating Company Limited has reaffirmed the Entity Ratings (ER) of Sheikhoo Sugar Mills Limited at single A-Minus/A-Two.

The medium to long-term rating of "A-" denotes good credit quality with adequate protection factors. Moreover, the risk factors may vary with possible changes in economy. The short-term rating of "A-2" denotes good certainty of timely payment coupled with sound company fundamental and liquidity factors. Outlook on the assigned ratings is stable. The previous rating action was announced on October 16, 2018, said press release on Friday.

The ratings assigned to SSML take into account moderate business profile of the company, largely underpinnes and long-standing strong business relationships with institutional customers. In addition, the company's recent efforts towards creation of multifold revenue streams through establishment of steel billet manufacturing plant is expected to result in improved profitability of the company coupled with assistance in withstanding the impact of cyclical slumps in sugar prices.