JCR-VIS Maintains Entity Ratings Of Sitara Chemical Industries

JCR-VIS Credit Rating Company Limited has maintained the entity ratings of Sitara Chemical Industries Limited SCIL) at single A Plus/A-One)

KARACHI, (UrduPoint / Pakistan Point News - 14th Nov, 2017 ) :JCR-VIS Credit Rating Company Limited has maintained the entity ratings of Sitara Chemical Industries Limited SCIL) at single A Plus/A-One).

The outlook on the assigned ratings has been revised from stable to positive, said a press release on Tuesday. The previous rating action was announced on June 7,2016. The rating assigned to SCII, took into account its leading capacity position in the price competitive chlor-alkai sector.

The sector dynamics continue to be volatile with excess capacity being available in a stable demand environment with existing and planned capacities being made energy efficient the competitiveness in the chlor-alkali market would increase.

The ratings also take into account the enhanced efficiency emanating from rationalized energy cost leading to better margins and sustained core profitability. Despite higher debt levels, overall financial risk profile of the institution remains intact reflected by strong internal cash generating capacity enabling timely servicing of its debt obligations.