Following is the text of press release issued by
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The ratings incorporate
The Company's process of going listed is at an advanced stage wherein approval from the regulatory authorities has been received. Underpinning the IPO is the Privately Placed Commercial Paper (PPCP) in issue whose repayment becomes due in July'20. Under the current fluid environment, the management sees that IPO will take sometime to roll out. Steps are being taken in this regard especially obtaining underwriting and capturing investors interest, and also to avail deferment of PPCP repayment under the SECP's Relief Package; availing deferment within the due timeline is critical to the ratings. Overall, the Company's financial risk profile displays a stretched outlook on account of elevated borrowings and persistent bottom-line losses in 9MFY20.
The situation has further compounded on account of the outbreak of COVID-19 pandemic in the country which has led to severe economic disruption and demand deceleration. As a consequence,
The ratings are dependent upon the company's aptness to arrest the adversities impacting its risk profile in a timely manner. Improved performance indicators, including reversal of losses and sanguine financial discipline are imperative to the ratings. Meanwhile, the ratings are placed under "Watch" to oversee the roll out of IPO and other steps needed to manage the financial challenges arising from the current mix of debt wherein contractual maturities are around.
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