PACRA Maintains Entity Ratings of Motorway Operations and Rehabilitation Engineering (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 17, 2021 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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Motorway Operations and Rehabilitation Engineering (Private) Limited (MORE) - a wholly owned subsidiary of Frontier Works Organization (FWO) - is specifically established for overlay and modernization of Lahore-Islamabad Motorway (M-2). The project is assigned by National Highway Authority on a Build-Operate-Transfer (BOT) basis for 20 years (beginning Apr-14). The construction phase comprised initial two years encompassing overlay and major rehabilitation work which was completed ahead of projected timeline in Aug-16. Lahore Islamabad motorway carries strategic importance as it adjoins two capitals. Over the last few operational years, MORE has witnessed consistent hike in traffic volumes and toll rates.

Furthermore, rental from service areas are also providing support to profitability. The rating reflects uplift in financial profile, standalone profitability, support from rentals and investment income. Payments to NHA, as per the agreement, are being done through cash flows emanating from business. The management is staggering payments therein. The financial risk matrix has witnessed significant improvement with reduced leveraging by timely repayment of debt. Pressure of robust liquidity on the...