The Pakistan Credit Rating Agency Limited
13-Nov-24
Analyst
Ali Arslan Malik
Ali.Arslan@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Rating Modifiers | Apr-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Corporate Rating | Jul-24
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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PACRA Withdraws the Ratings of Mughal Iron & Steel Industries Limited | PPSTS | PKR 3bln | Apr-24 | Redeemed
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 3000 mln |
| Issuance Date | 18-Apr-24 |
| Tenor | 0.5 Years |
| Redemption Date | 15-Oct-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (13-Nov-24 ) |
Previous (23-May-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited issued a rated, privately placed Sukuk (PPSTS) amounting to PKR 3,000 million on April 18, 2024. The Sukuk had a tenor of 6 months and carried a profit rate of 6MK+110bps. It has been fully redeemed, with all principal and markup paid by the Company on October 15, 2024.
As a result, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Mughal Iron & Steel Industries Limited | PPSTS | PKR 3bln | Apr-24.
About
the Entity
Mughal, is a public limited company incorporated in 2010, is primarily engaged in the manufacturing and sale of billets, girders, and rebars. The Company has also expanded its product base by entering in non-ferrous segment. Mughal operates with a melting capacity of 590,000M.T.,rerolling capacity of 630,000M.T., and non-ferrous recycling capacity of 90,000M.T. Currently, a nine-member BoD is monitoring the overall functioning under the chairmanship of Mr. Mirza Javed Iqbal. Mr. Khurram Javaid is on the execution lead as CEO and the driving force behind the Company. Other senior tier management is associated with the Company for a fairly long period of time. Diversified skill set and experience of multiple years reflected from member's profile, contribute to strong foot printing of the Company in the market.