Press Release

VIS Maintains Ratings of Master Motor Corporation (Private) Limited
 

Karachi, May 21, 2020: VIS Credit Rating Company Limited (VIS), while maintaining the entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) assigned to Master Motor Corporation (Private) Limited (MMCL), has placed the same on ‘Rating Watch-Negative’ status. The long term rating of ‘A-’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment; Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. The previous rating was announced on 26th August 2019.

The revision in rating outlook reflects prevailing uncertainty in auto sector dynamics due to coronavirus outbreak, prolonged lockdown, overall contraction in demand and challenging economic environment. Status of the assigned rating is therefore uncertain as an event of deviation from expected trend has occurred; additional information will be necessary to take any further rating action, warranting a ‘Rating Watch’ status. Given the compression in demand and expected impact on cash flows, ratings are being placed on ‘Negative’ outlook. Ratings remain dependent on maintaining sound cash flow coverages and prudent leverage indicators. VIS will closely monitor and will accordingly take action to resolve the outlook status.

MMCL is a part of the Master Group of Companies. Amongst others, the group has diversified presence in mattresses & upholstery, home fashion, textile, chemical, power, automobile and auto part sectors. MMCL is involved in the assembly of trucks and buses with manufacturing facility at Port Qasim, Karachi. The company is ISO9001 certified for both its assembly plant & after sales services & marketing, hence meeting international quality standards.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk




Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Industrial Corporates (April 2019)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Corporate-Methodology-201904.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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