20000411

Pacra maintains Gatron Ind TFC rating

RECORDER REPORT

KARACHI: Pakistan Credit Rating Agency has maintained the rating of "A+" (single A plus) to the term finance certificate (TFC) issued by Gatron Industries Limited.

The value of Gatron Industries TFC was Rs 274 million. The rating represents high credit quality and denotes a low expectation of credit risk. The capacity for timely fulfilment of financial commitments is considered strong but this capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.

The company has successfully faced a difficult business environment during 1998 as margins, squeezed on the core product of polyester filament yarn are now beginning to show improving trends.

The prospects have been further strengthened by substantial improvement in capacity utilisation in the recently commissioned PET raisin facility. Meanwhile, strong operating cash flows keep the financial position sound and the presence of sponsor support provides additional comfort.