KARACHI: The Pakistan Credit Rating Agency Limited assigns initial entity ratings of ‘A-/A2’ to Diamond Tyres Limited. The assigned ratings reflect Diamond Tyres profound acumen of the sponsor and relatively stable position in the tyre industry.

The ratings are dependent on management’s ability to sustain its business profile and profitability in line with business expansion. Prudent management of the working capital, maintaining sufficient cash flows and coverages are imperative. Improvement in governance structure remains important for the ratings, however, the governance framework needs strengthening.—PR

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