The Pakistan Credit Rating Agency (PACRA) said it withdrew the BBB long-term and A3 short-term entity ratings on local cement producer Pioneer Cement Ltd with immediate effect.
The withdrawal follows the company’s decision to suspend the rating relationship.
Pioneer Cement’s business profile has come under significant pressure, mainly on account of restrained prospects of the company amidst various challenges faced by the cement sector. Meanwhile, the financial profile is stressed due to high leveraging and subdued cash flows. The management is in the process of restructuring its debt obligations and organisational structure, while the ownership structure of the company is undergoing a major change.