Press Release

The Pakistan Credit Rating Agency Limited

Press Release

Date
28-Jun-18

Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Methodology | Corporate Rating Methodology | Jul-17

Related Research

Sector Study | Rice | Dec-17

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Engro Eximp Agriproducts (Pvt.) Limited

Rating Type	Entity
Rating Type	Current (28-Jun-18 )	Previous (29-Dec-17 )
Action	Maintain	Initial
Long Term	A-	A-
Short Term	A2	A2
Outlook	Stable	Stable
Rating Watch	-	-

The ratings reflect the strength of ownership structure of the company: EEAP is a wholly owned
subsidiary of Engro Corp (rated AA by PACRA). The CEO of Engro Corp is also the CEO/Chairman of EEAP. Ratings take comfort from the strong corporate governance framework of the group. The company accumulated huge losses in the past - now recovery is taking place. The company is expected to book profits. The equity base is also expected to take advantage from ensuring profits and reversal of impairment. The financial risk profile is adequately covered.
The ratings are dependant upon the maintained business volume and recovery from losses.
Adherence to sound financial discipline while strengthening debt servicing capacity through
improving cash position is vital for the ratings.

About the Entity
Engro Eximp Agriproduct (Pvt.) limited, incorporated in 2010, is a wholly owned subsidiary of
Engro Corp. The board of Engro Corp is chaired by Mr. Hussain Dawood – A renowned
businessman. The board of Engro Eximp Agriproduct (Pvt) Ltd comprises three members
including the CEO of the Company – Mr. Ghias Khan, is the chairman of the board.
Mr. Ghias Khan is an experienced professional with over 15 years of experience. At Engro,
Mr. Khan has played a vital role in "digital first" vision and strategic planning guide to the entire
group of Engro. He is assisted by an able team.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.