At-Tahur Limited has been assigned an initial Long Term entity rating of ‘A-‘ (A Minus) by VIS Rating Agency. The long-term rating of ‘A-’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating has been assigned at ‘A-2’ signifying better certainty of timely payments in the short term. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned ratings is ‘Stable’.
ATL is one of the leading Food sector companies running an integrated dairy operation for the production and pasteurization of milk and manufacturing of dairy products working under the brand name ‘Prema’.
ATL sells pasteurized milk with a shelf life of up to one week, plain and sweet yogurt, fruit yogurt, Laban, flavored milk, butter and cream cheese among 30 assorted units.
VIS rating reads that ‘Business risk profile is characterized by increasing intensity of competition in the value-added dairy due to low barriers to entry, relatively low capital requirements, and challenging operating dynamics. While improving awareness of milk quality and popularity among the high-income groups have enhanced the demand for pasteurized milk in recent years, the transition from loose milk continues to remain a major challenge mainly due to notable differences in price. Moreover, due to the short shelf life of the key products, the efficient marketing and management of the cold supply chain remain a challenging task, making it difficult for the company to build a broader customer base.
The attainment of External Credit Ratings will help company in diversifying its Borrowing and lower its Financing Cost. The ratings will also help the company in expanding its operations in overseas market.