Lahore, February 28, 2019 (PPI-OT): The ratings of Fatimafert reflect the strength of its sponsor – Fatima Fertilizer Limited – offering dynamic business acumen and strong financial flexibility. Fatimafert’s plants remained idle for most of the period CY18 due to suspension of gas. The pressure released followed by revival of closed plants at subsidized rates in the last quarter of CY18. Fatimafert plants resumed to life September ’18 onwards where it only operated for 85 days the entire CY17.
Despite the favourable domestic demand/supply scenario in the market, continued gas challenges entirely overshadowed the company’s operations. The Company’s financial profile suffer from a thin topline, majorly secured through DAP trading. Eroded margins accompanied by borrowings added much strain. Eyeing for a sustainable yet value adding business profile, a group level business strategy has been laid out as per which Fatima Fertilizer Company Limited (FFCL) is merging Fatimafert Limited (its wholly owned subsidiary) with and into itself. The rating are kept under ‘Rating watch’ in anticipation of merger with Fatima Fertilizer. The Company is expected to completely dissolve once regulatory approvals are sought.
For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com