Details

Case

Educator Copy

Grey Cement Limited

Bilal Masood, Usman Hassan, Naim Sipra


INDUSTRY : Consumer Products

AREA : Finance

ORGANIZATION : Grey Cement Limited

LENGTH : 33

LUMS No : 02-576-97-1

PUBLICATION YEAR : 1997

DESCRIPTION

KEYWORDS:

Grey Cement,Limited,Finance,Consumer Goods,Management,Financial Advisors,Credit Rating Agency,Bond


DESCRIPTION:

In July 1996, the management and financial advisors of Grey Cement Limited (GCL) approached the Pakistan Credit Rating Agency (PACRA) Private Limited, to obtain a credit rating for its proposed Term Finance Certificates (TFC) issue. Since 1995, PACRA had publicly disclosed the ratings of four TFCs: Sui Southern Gas Company Limited, rated AA; Packages Limited, rated A+; Nishat Tek Limited, rated A+ and; ICI Pakistan Limited, rated AA. The Rating Committee, comprising the senior management and concerned analysts, was now looking at the cement sector and at GCL, to assign a rating to the proposed TFC issue. PACRA was the first credit rating company in Pakistan, and followed the standard methodology used by rating companies world-wide, in order to provide an assessment of the risk profile of a bond issue or an entity.


LEARNING OBJECTIVES:

N/A


SUBJECTS COVERED:

Finance