Press Release

JCR-VIS Assigns Preliminary Rating to the PPTFC of Hascol Petroleum Limited
 

Karachi, June 9, 2014: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned preliminary rating of ‘AA-’ (Double A Minus) to the proposed Privately Placed Term Finance Certificate (PPTFC) of Rs. 500m of Hascol Petroleum Limited (HPL). Outlook on the assigned rating is ‘Stable’.

The proposed TFC issue will have a tenor of 6 months; proceeds of the TFC issue would be placed in a Term Deposit Receipt with a highly rated bank, to be utilized as margin for Letter of Credit. As per the proposed structure, the maturity of the TDR will coincide with the repayment of the TFC issue, which is in bullet form; proceeds of the maturing TDR will be earmarked to be utilized for retirement of the TFC issue.

The assigned entity ratings of ‘A+/A-1’ (Single A Plus/A-One) draw comfort from the growing business volumes and timely cash collections; trade debts have remained at manageable levels. While gross margin continues to remain low, higher volumetric sales have provided impetus to the company’s bottom line and cash flows. Meanwhile, debt levels on the company’s balance sheet are considered within manageable limits while there are no significant borrowings planned over the foreseeable future.

For further information on this rating announcement, please contact the undersigned or Ms. Sobia Maqbool, CFA (Ext: 604) at (021)35311861-70 or fax to (021)35311872-3.




Javed Callea
Advisor

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2014 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited