KARACHI:VIS Credit Rating Company Limited has maintained entity ratings of Procon Engineering (Pvt.) Limited (PEPL) at single A /A-two. Outlook on the ratings has been revised from rating watch-negative to stable.
Long-term entity rating of ‘A’ reflects good credit quality, adequate protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A-2’ indicates good certainty of timely payment, liquidity factors and company fundamental factors are sound. Previous rating action was announced on May 21, 2020, said VIS release on Thursday.
Revision in rating outlook takes into account PEPL’s strong recovery from the pandemic led weakening. PEPL posted significant growth in revenues in the fiscal year 2020-21 on the back of volumetric growth in sales. Gross margins of the company inched upwards on account of higher product prices.
Profitability was further supported by reduced financial costs and income emanating from recognition of share of profit from associates.