Karachi—JCR-VIS Credit Rating Company Limited has assigned initial entity ratings to Thatta Cement Company Limited (TCCL) at ‘A-/A-2’ (Single A Minus/A-Two). The outlook on the assigned ratings is stable, said press statement here on Wednesday.
The assigned ratings to TCCL take into account the improvement across various financial and operations: performance metrics financial indicators are supported by adequate liquidity and sound capitalization indicators.
Moreover, higher capacity utilization and improvement in plant efficiency has supported operational performance indicators. Ratings also reflected company’s existing market position, lower market share and brand strength compared to peers.
The growing cement demand in Pakistan was expected to gain momentum with the advent of China Pakistan Economic Corridor (CPEC) and its corollary projects.
Accordingly, planned capacity expansion in the South was expected to double its existing capacity, going forward. Additional capacities might pose a risk but industry players anticipate growth in domestic demand to largely absorb addition capacities.