VIS Credit Rating Company Assigns Initial Ratings to Fauji Fertilizer Bin Qasim Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- August 27, 2019 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited (VIS) has assigned initial long term entity rating of 'A+' (Single A) and short term rating of 'A-1' (A-One) to Fauji Fertilizer Bin Qasim Limited (FFBL). Long term rating of 'A+' denotes good credit quality and adequate protection factors; risk factors may vary with possible changes in the economy. The short term rating of 'A-1' signifies high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings is 'Stable'.

Headquartered in Islamabad, Pakistan, FFBL is the sole domestic producer of Di-Ammonium Phosphate (DAP) fertilizer. It is also the only producer and marketer of granular form UREA (in contrast to widely marketed 'prilled' variant). FFBL enjoys leadership in DAP fertilizers with market share of 30.7% and is Pakistan's 4th largest producer of UREA. Fauji Foundation (FF) and its subsidiary Fauji Fertilizer Company Limited (FFC) hold majority shareholding in FFBL. Both FFC and FFBL market their products under one umbrella brand 'Sona', which has wide recognition among the farmers' community. DAP segment represents around three-fourth of the Company's overall revenues. Seasonality in DAP sales is more pronounced than UREA sales resulting in a seasonal liquidity cycle for the Company.

The assigned ratings incorporate strong financial profile and business acumen of FFBL's major sponsors -FFC and FF. Rating also reflect FFBL's leading market position in DAP business, diversified business risk profile and strong corporate governance...