Press Release
VIS Reaffirms Entity Ratings of International Industries Limited
Karachi, November 07, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of International Industries Limited at ‘AA-/A1’ (Double A minus/A one). Medium to long term rating of ‘AA-’ indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of 'A1' indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on Oct 22, 2024.
International Industries Limited (‘IIL’ or ‘the Company’) is a leading manufacturer of steel and polymer pipes in Pakistan and is part of Amir S. Chinoy (ASC) Group, a longstanding player in the industrial sector. The Company operates two manufacturing facilities in Karachi and one in Sheikhupura, while maintaining a global footprint through its international subsidiaries namely, IIL Australia Pty Ltd, IIL America Inc., and newly established INIL Europe Ltd. The Company also operates IIL Trading Pvt Ltd, engaged in trading of construction materials and allied products from renowned brands in Pakistan.
The assigned ratings reflect the business risk profile of the steel industry, assessed as medium, given the industry’s cyclical nature, reliance on imported raw materials, exposure to exchange rate movements, and uneven competitive landscape. Sector dynamics remain challenging due to high energy costs and weak demand; however, an improving macroeconomic environment, higher PSDP spending, and the phased withdrawal of FATA/PATA tax exemptions are expected to support gradual recovery in FY26.
Ratings also factor the financial risk profile of IIL which remains sound, driven by reduced debt levels, improved capitalization, and healthy liquidity indicators. Margins have largely remained stable, while efficient working capital management has strengthened cash conversion cycle. Looking ahead, we expect moderate topline growth led by improving macroeconomic conditions and profitability supported by focused expansion in polymer pipes segment, offering engineering solution products and solarization-driven cost savings.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf