Karachi, June 03, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Olympia Oils (Pvt.) Limited (OOL) at ‘BBB+/A-2’ (Triple B Plus/A-Two). The medium to long-term rating of ‘BBB+’ denotes adequate credit quality with reasonable protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on April 12, 2018.
OOL is the flagship company of a diversified industrial conglomerate “Monnoo Group” having business interests in textile, carpets, chemicals, synthetics, and poultry. The ratings reflect stable business model, positive momentum in sales and adequate liquidity. The ratings also incorporate vertical integration of OOL with its group companies and favourable demand prospects of edible oil in domestic market. Moreover, the ratings draw strength from long term debt free balance sheet and sound debt service coverage. However, the ratings remained constrained on account of high leverage indicators, low margins and highly price sensitive import market of raw material.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan