Sukuk issue by Maple Leaf Cement Factory assigned 'A+' rating

The Pakistan Credit Rating Agency (Pacra) has assigned a rating of 'A+' (Single A plus) to the proposed secured Sukuk issue of Rs 8,000 million by Maple Leaf Cement Factory Limited (MLCEL). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The rating reflects the expected improvement in the overall performance of the company based on better business prospects and likely increase in efficiency as new production lines commence full operations.

The rating also takes into account MLCFL's strong equity base and its association with a reputed business group. The rating is dependent on successful execution of the management's export strategy and its ability to effectively utilise new capacity to improve turnover, margins and cash flows. The sustainability of the export operations, especially in the medium-term, also remains critical.-PR