Press Release
VIS Logo

Press Release

VIS Reaffirms Ratings of Olympia Oils (Pvt.) Limited

Karachi, May 31, 2019: 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 favorable 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 further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.



Atiq Anwar Mahmudi
Advisor


Applicable rating criterion: Corporates (May 2019)
https://www.vis.com.pk/kc-meth.aspx

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 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 May 31, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.