PACRA assigns Initial Entity Ratings to Meskay and Femtee (Private) Limited

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Lahore, March 01, 2019 (PPI-OT): The ratings reflect long presence of the sponsors in rice industry and prominent name in the rice export market. the family has a rich experience of the rice export market and also has stake in the rice market in addition to Meskay. Meskay has expanded its capacity; the two new lines have been recently commissioned, eventually strengthening the business profile of the company. The growth in topline and persistent profitability is the company’s forte. There is an element of devaluation impact, as well. The equity has also improved due to internal generation of funds.

The second generation is playing a vital role in the growth of Meskay. The challenge remains in the cyclical nature of the rice business. The governance is concentrated in family’s hand, whereas corporate structure may evolve. The working capital cycles is business-oriented, creating need for short term borrowing over a relatively a longer horizon. The ratings are dependent on Meskay’s prominence in the industry and financial profile of the rated entity. Any dilution in business volume and profits would be considered negative.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425