The Pakistan Credit Rating Agency Ltd. (PACRA) has upgraded the long-term and short-term entity ratings of Bestway Cement Limited to AA-, from A+, and to A1+ from A1, respectively. These ratings denote a very strong capacity of timely payment of financial commitments.
These ratings reflect Bestway Cement’s strong business profile due to its strong market share, increasing local dispatches, efficient operational framework resulting in sound EBITDA margins, and healthy profitability. The successful acquisition of Pakcem Limited has fortified its market position. As a result, Bestway has become the largest player, having ~18% of the country’s cement capacity. Additionally, Bestway Cement has an established and dependable dividend from its strategic investment in United Bank Limited, augmenting its cash flow. Going forward, the focus is on capitalising on the potential synergic benefits of large size to improve margins.
Adapted from press release by Rebecca Bowden