Press Release

VIS Reaffirms Ratings of Olympia Oils (Pvt.) Limited

Karachi, Sep 17, 2020: 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 May 31, 2019.

OOL is primarily engaged in the production and sales of edible oil and oil meal using solvent extraction process. OOL is the flagship company of a diversified industrial conglomerate “Monnoo Group” having business interests in textile, carpets, chemicals, synthetics, and poultry. The ratings draw strength from moderate business risk profile based on majority sales to institutional clients thereby avoiding competition from mainstream branded oil market. The ratings also incorporate lower demand risk of oil meal due to vertical integration with group owned feed mills which utilize around half of production output. The ratings also draw comfort from minimal reliance on long term borrowings and adequate debt service coverage. Leverage indicators have decreased while margins have witnessed some improvement during the outgoing year; the trend of which needs to be seen overtime. The ratings take into account the price sensitivity of imported raw material & exchange rate fluctuations and the competitive landscape of the industry.

For further information on this rating announcement, please contact Syed Fahim Haider at (042) 35723411-13 or the undersigned at (021) 35311861-66 or email at info@vis.com.pk .





Faryal Faheem Ahmed
Deputy CEO

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 September 17, 2020 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.