Press Release

JCR-VIS Assigns Initial Ratings to Pakistan Cables Limited

Karachi, September 04, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of ‘A/A-1’ (Single A /A-One) to Pakistan Cables Limited (PCL). Outlook on the assigned ratings is ‘Stable’.

The assigned ratings incorporate PCL’s position as the leading wire & cable manufacturer in the country and strong brand strength and reputation as a provider of quality cables. Business risk profile is underpinned by growing demand for wires & cables and extensive experience and track record of the management team. Overall corporate governance framework is supported by sound board oversight, stable and professional management team and focus on transparency and disclosures. Going forward, ratings are dependent on timely completion of proposed expansion while maintaining financial indicators within benchmarks for the assigned ratings.

The wiring & cable industry is characterized by significant competition with existence of several large players and numerous small unorganized firms. Business risk profile is supported by stable and growing demand for wires & cables in the country from housing, energy, automotive, construction and other segments. However, business to business segment is exposed to competition from Chinese imports while retail sales face competition from informal manufacturers operating domestically.

PCL posted improvement in profitability during FY17 on account of growth in sales, lower effective tax rate and one-time reversals. Liquidity profile draws support from adequate cash flows in relation to outstanding obligations. Debt profile of PCL is largely short-term in nature while leverage indicators have remained within manageable limits. The Company is in the process of expansion of manufacturing facilities which will enhance production capacity and further augment cash flows. Right shares for planned expansion were announced with proceeds realized in July’2018.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.

Javed Callea

Applicable Rating Criteria: Industrial Corporates (May 2016)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited JCR-VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited