Tassnief assigns long-term entity rating of ‘A-‘ to MEPCO

In an emailed statement to Argaam, Tassnief said it considers the rated issuer to hold high creditworthiness and thus low credit risk although the risk profile may vary with changes in economic / sector conditions.

The assigned ratings incorporate MEPCO’s leading market position with the Company being one of the largest manufacturers of containerboard in the region. Ratings also reflect company’s diversified product offerings (11 products including tissue manufacturing) and sales mix in terms of local and export sales which is a competitive advantage over peers, exposure to fast growing sectors and strong operating performance in terms of consistently high-capacity utilization.

The company’s satisfactory liquidity profile, sound capitalization indicators and conservative financial policy are also key rating drivers. With planned expansions, long-term borrowings are expected to increase over the rating horizon; however, Tassnief anticipates leverage indicators to remain within manageable levels.