CRISL Rating Watch

26 September 2012

Rating Watch: The Rating Committee of CRISL has put M. M. Vegetable Oil Products Ltd., a concern of Mostofa Group into rating watch with likely down-gradation of rating in view of its recent distress position resulting to non repayment of financial obligation in timely manner

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26 May, 2013

Rating Watch:

Debt crisis in Europe and fear of a double-dip recession in developed economies has resulted in the falling of jute product’s demand in the developed countries. Middle Eastern countries (Syria, Egypt, Iraq, Iran, and Libya), North African countries and Turkey usually import majority of Bangladesh’s yarn to use it as a raw material for making carpet. 60% of the total export is made to Turkey which has now reduced yarn import from Bangladesh for fearing the fallout of European crisis. Moreover, most of the Middle Eastern countries are undergoing political unrest, which has also reduced their import. To top the crisis, Government of India has turned down proposals from Bangladesh and Nepal to supply gunny bags in 2012-13 for packing sugar and food grains. The mills run by the government are therefore in trouble so local procurement of raw jute has been hampered to a great extent. Responding to this situation, a huge amount of jute remains unsold in the warehouse which has caused a significant demand supply gap leading to fall in price of raw jute in the global market. Moreover, the cultivation of jute has drastically fallen owing to previous loss of the farmers, high increase of production cost (high priced fertilizers, fuel & wages). The traders are also showing less interest on jute export because of high transport cost. Non-conformity to stipulated product standards and irregular supply by manufacturers are adding to the fall of price both locally and globally.

In response to the above crisis in the raw jute sector, CRISL has decided to keep put the following companies under Rating Watch with ‘Negative’ outlook.

SL NO.

Company Name

Long Term 

Short Term 

Validity

1 Sunrise International (Jute Trading) BBB+ ST-3 Expired
2 M/s. Rifa Trading International BBB ST-3 Expired
3 M/s. Sharif Mollah BBB ST-3 Expired
4 M/s. Hafiz & Brothers BBB+ ST-3 Expired
5 M/s. S. Islam Jute Trading BBB+ ST-3 Expired
6 M/s. Sartaj Trade International BBB ST-3 Expired
7 Jewel Jute Ltd. A- ST-3 Expired
8 M/s. Akunzee Brothers BBB+ ST-3 Expired
9 M/s. A. K. Jute Trading Co. A ST-3 Expired
10 M/s. Reza Jute Trading A- ST-3 Expired
11 M/s. Mollah Jute Trading BBB+ ST-3 Expired
12 M/s. Zia Jute Trading BBB+ ST-3 Expired
13 Rose & Promy Jute Ltd. BBB+ ST-3 Expired
14 M/s. Rakib Jute Fibres BBB ST-3 Expired
15 The Bengal Jute Trading BBB+ ST-3 Expired
16 M/s. Gani Jute Trading BBB- ST-3 Expired
17 Madaripur Jute Trading BBB+ ST-3 Expired
18 Ardi Jute Trading BBB ST-3 Expired
19 Madina Jute Trading BBB ST-3 Expired
20 M/s. Sirazul Islam A- ST-3 Expired
21 M/s.Monwara Jute & Fibres A- ST-3 Expired
22 F.R.Jute Trading Co. Ltd. A- ST-3 Expired
23 Anik Jute International BBB+ ST-3 Expired
24 M/s. S.R.Jute Trading BBB ST-3 Expired
25 S.K Jute BBB ST-3 Expired
26 The Pathan Jute Trading Ltd. BBB+ ST-3 Expired
27 Sharif Jute Trading BBB+ ST-3 Expired
26 P.R.Jute Trading BBB+ ST-3 Expired
29 M/s. Rabbi Enterprize BBB- ST-3 Expired
30 M/s. Papen Jute Trading BBB+ ST-3 Expired
31 Alamgir Jute Traders BBB ST-3 Expired
32 M/s.F.M.Jute Supply BBB ST-3 Expired
33 M/s. S.B.Trade International BBB ST-3 Expired
34 A.Z. Trades BBB+ ST-3 Expired
35 Zaman Brothers BBB+ ST-3 Expired
36 Magura Jute Traders BBB ST-3 Expired
37 M/s. Alif Jute Trading BBB+ ST-3 Expired
38 Jishan Jute Trading BBB ST-3 Expired
39 Alhamdulillah Jute Trading BBB ST-3 Expired
40 Nakkhattro Jute Ltd. BBB+ ST-3 Expired
41 Islam Trading BBB+ ST-3 Expired
42 Purabi Jute Traders BBB ST-3 Expired
43 M/s. Abu Daud Traders BBB ST-3 Expired
44 Pioneer Jute Traders BBB ST-3 Expired
45 M/s. Khulna Jute Trading BBB ST-3 Expired
46 M/s. Biraj Enterprize BBB ST-3 Expired
47 M/s.Lahuria Jute Supply BBB ST-3 Expired
48 Bengal Jutex BBB+ ST-3 Expired
49 M/s. Shourav Traders BBB ST-3 Expired
50 Wahid Jute Trading BBB ST-3 Expired
51 Prantic Jute Fibars BBB ST-3 Expired
52 Brother’s Trade International BBB ST-3 Expired
53 M/s. Bismillah Jute Trading BBB+ ST-3 Expired
54 M/s. Shahed & Sons BBB ST-3 Expired
55 M/s. H.K Jute Trading BBB ST-3 Expired
56 M/s. Golden Jute Supply BBB+ ST-3 Expired
57 M/s. K.R.Jute Trading BBB ST-3 Expired
58 M/s Mohsin & Brothers CRISL-SME3 03/09/13
59 M/s S & S Jute Trading Co. CRISL-SME3 01/12/13
60 M/s S.B. Jute International CRISL-SME3 30/12/13