The Pakistan Credit Rating Agency (Pacra) has upgraded the long-term rating to "A+" (Single A plus), while maintaining the short-term rating at "A1" (A One) of Azgard Nine Limited (ANL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The rating of the first secured TFC issue of 2,144 million rupees has been upgraded to "AA-" (Double A minus). Meanwhile, short-term rating of "A1+" (A one plus) has been assigned to the second secured TFC issue of 2,500 million rupees, pending redemption in January 2008.

The ratings reflect the company's sustained progression towards higher value addition in denim products, supplemented by efficient vertical integration of textile operations, and long-standing relationships with customers. At the same time, the ratings recognise the beneficial implications of the acquisition of fertiliser operations for the overall business risk of ANL.-PR

Copyright Business Recorder, 2007