The Pakistan Credit Rating Agency (Pacra) has upgraded the long-term and short-term entity ratings of Nishat Mills Limited (NML) to AA- (double A minus) and A1+ (A one plus), respectively. The ratings denote a very low expectation of credit risk.
They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. The ratings reflect NML's ability to maintain its positioning in the key markets despite tough economic times. The company's diversified revenue stream, large market segmentation, and sound customer base, while sustaining its margins, have led to a considerably protected business risk profile. In addition, ratings incorporate a consistent dividend stream from strategic investments - lately supplemented by acquisitions in the power segment. The entity continues to maintain sound coverage, engendering good risk absorption capacity against the challenging business dynamics. Meanwhile, NML's association with Nishat Group as its flagship company remains a key rating factor.-PR