Rating Release
Agusto & Co. hereby assigns a Bbb+ rating to Paras Energy and Natural Resources Development Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby assigns a Bbb+ rating to Paras Energy and Natural Resources Development Limited (“PENRDL” or “the Company” or “Paras Energy”). The rating reflects the Company’s satisfactory financial condition characterised by good profitability, satisfactory cash flow, low leverage and a stable and experienced management team. Agusto & Co has also taken into consideration Paras Energy’s export-centered business operations which provides significant upsides in periods of foreign currency volatilities and immunity from unreflective tariffs that continue to plague the domestic electricity market. However, the rating is constrained by significant intercompany balances which have the potential to constrain liquidity and the adequacy of working capital as well as a concentrated customer base.
