PACRA: Attock Refinery credit ratings stable

LAHORE: The Pakistan Credit Rating Agency (Pacra) maintained the long-term and the short-term entity ratings of Attock Refinery (ARL) at ‘AA’ (Double A) and ‘A1+’ (A One Plus), respectively, according to a press release. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payments of financial commitments. The ratings incorporate ARL’s strong risk absorption capacity emanating from robust financial profile, sound cash flows and healthy profitability. This in turn facilitates the company to cope with the menace of circular debt. The refinery’s core refining business remains exposed to vicissitude of the international crude oil and refined products pricing. However, the sizeable investment book - comprising strategic investments and bank placements - provide a stable source of income. This provides cushion to the company’s core business in times of depressed refining margins.

Published in The Express Tribune, October 20^th, 2012.