Press Release
VIS Upgrades Medium to Long-term Entity Rating of Maple Leaf Cement Factory Limited
Karachi, December 4, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the medium to long-term entity rating of Maple Leaf Cement Factory Limited (‘MLCF’ or ‘the Company’) from A (‘Single A’) to A+ (‘Single A Plus’). Short-term rating has been reaffirmed at ‘A1’ (A One). Medium to long-term rating of ‘A+’ reflects good credit quality with strong protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on October 11, 2024.
MLCF, a public limited company listed on the Pakistan Stock Exchange (PSX), is primarily involved in the production and sale of cement and wall putty. MLCF is a part of Kohinoor Maple Leaf Group (KMLG). KMLG comprises two listed public limited companies i.e., Kohinoor Textile Mills Limited (KTML) and MLCF and three unlisted public limited companies i.e., Maple Leaf Capital Limited (MLCL), Maple Leaf Power Limited (MLPL), NovaCare Hospitals (Private) Limited (NHPL). and an associated listed company Agritech Limited (AGL).
The Company ratings reflect its sustained business position within Pakistan’s cement sector. The Company’s integration within the Kohinoor Maple Leaf Group provides strategic advantages. The long-established management team, led by an experienced leadership with deep sectoral expertise, continues to demonstrate sound corporate governance and strategic oversight. The Board’s composition and functioning remain compliant with regulatory requirements, supported by well-structured audit and remuneration committees, ensuring adherence to transparency and accountability standards.
Operationally, the Company has maintained stable production levels despite industry-wide challenges stemming from subdued construction demand, fluctuating input costs, and energy price volatility. The resilience in profitability is underpinned by strong pricing power, cost rationalization initiatives, and enhanced efficiency in energy usage. The Company’s ability to sustain healthy margins and positive cash flows amid sectoral headwinds underscores its competitive positioning.
Financially, MLCF continues to demonstrate a conservative capital structure characterized by declining debt levels, strengthening equity base, and improved liquidity. The repayment of long-term obligations and reduced reliance on short-term borrowings have contributed to lower leverage, while effective working capital management has enhanced liquidity buffers. Robust internal cash generation and income from subsidiaries further bolster the financial profile, ensuring strong debt-servicing capacity and adequate coverage metrics. Sustenance of improving financial profile would remain important from ratings perspective.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf