Karachi, April 06, 2018 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Master Motor Corporation (Private) Limited (MMCL). Outlook on the assigned rating is ‘Stable’.
The assigned ratings to MMCL incorporates company’s position as a prominent player in the assembling of leading Chinese and Japanese automobile manufacturers, sound business risk profile underpinned by growing demand for heavy vehicles, protective duty structure and raw material and exchange rate fluctuation pass through mechanism in place with clients. Ratings could be constrained by adverse changes in operating environment and duty structure on raw products. Current ratings of the company take into account sound financial profile and low leverage indicators. The ratings also incorporate MMCL’s association with a renowned and well established business group of the country.
MMCL belongs to the automotive industry with luxury buses as its flagship product. The company also produces trucks and prime movers. Customer profile of the industry varies from oil and gas, logistics, power, medicine, pharmaceuticals, food etc. Revenue base of the company has grown on a timeline basis largely on the back of higher volumes. In order to improve its top line, MMCL also plans to expand its product line into medium sized Foton trucks and prime movers for which it has invested in production facilities.
Debt profile of MMCL comprises short-term debt only, acquired on a need basis for working capital financing. Leverage indicators remained within manageable limits. At current debt levels, debt servicing coverage remains comfortable with the company projecting further improvement in the same. Moreover, management envisages meeting its future funding requirements through internal capital generation and director’s loans.
For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk