VIS reaffirms ratings of Shahmurad Sugar Mills at A-/A-2

KARACHI: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Shahmurad Sugar Mills Limited (SSML) at Single A Minus/ A-Two. Outlook on the assigned ratings is stable.

The previous rating action was announced on November 30, 2017, said a press release on Thursday.

The assigned ratings incorporate improving overall business and financial risk profile. Overall business risk profile is supported by improved profitability of the ethanol segment resulting in enhanced cash flow coverage of outstanding debt and increase in debt servicing ability.

Ratings are constrained by weak business dynamics of the sugar sector and elevated leverage indicators.