VIS assigns IER of A/A-1 to Maple Leaf Cement Factory

VIS Credit Rating Company Limited has assigned initial entity ratings of single-A Plus/A-One Plus to Maple Leaf Cement Factory Limited.

The long- term rating signifies good credit quality with adequate protection factors. Risk factors are considered variable if changes occur in the economy. Short- term rating of ‘A-1’ depicts high certainty of timely payments. Liquidity factors are excellent and supported by good fundamental protection factors, risk factors are minor. Outlook on the assigned rating is stable, said release on Thursday.

The assigned ratings to MLCF incorporate the company‘s market position as one of the leading cement players in the country. Ratings also reflect the company‘s satisfactory and efficient operations with MLCF being one of the low-cost producers in the cement sector. Ratings are constrained by current challenging sector dynamics and weakening in financial profile over time. However, MLCF‘s re-profiling of all long-term debt till end of fiscal year 2020-21 from proceeds of rights issue provides support to ratings.