Panama Petrochem’s Joint Managing Director Hussein Rayani says the company’s improved operational and financial performance led to an upgrade of its rating.

The stock of the lubricating oil and grease manufacturing firm has gone up 51 percent in the last three months. The company also reported strong earnings for the March-ended quarter but on a low base.

Moreover, CARE Ratings upgraded Panama Petrochem’s short and long-term borrowing facilities.

“We have been upgraded on our credit ratings by CARE for long-term bank facilities to A from A- (minus) and short-term bank facility upgraded to A1 from A2+ (plus). The revision of ratings is assigned due to significant improvement in operating and financial performance in the year 2021,” Rayani told CNBC-TV18.

Panama Petrochem has plans to increase production capacity to 3.4 lakh tonnes in the next three years, Rayani said. He added that the company expects to see revenue growth in the range of 15-20 percent in FY22, the firm’s Joint MD said.

He also clarified that they have no plans to raise any debt. “We have been a debt-free company and we plan to remain so going forward,” he said.

For the entire management interview, watch the video

(Edited by : Kanishka Sarkar)