Press Release

VIS Maintains Entity Ratings of Pakistan Cables Limited

Karachi, December 19, 2025: VIS Credit Rating Company Ltd. (VIS) has maintained entity ratings of Pakistan Cables Limited at ‘A/A1’ (Single A/A One). The medium to long term rating of ‘A’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A1’ denotes strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating has been revised from ‘Negative’ to ‘Stable’. Previous rating action was announced on November 20, 2024.

Assigned ratings of Pakistan Cables Limited (‘PCAL’ or ‘the Company’) are supported by its established footprint in wires and cables sector and its association with the Amir S. Chinoy Group, a major industrial conglomerate. The change in outlook reflects improvement in the Company’s risk profile, supported by progress on strategic initiatives that are expected to sustainably strengthen business fundamentals and cash flow stability going forward. During FY25–1QFY26, the Company completed construction and commissioning of its fully integrated Nooriabad manufacturing complex, which is expected to substantially enhance operational scale, backward integration, and cost efficiency. Production consolidation at end-CY25 is expected to unwind the dual-site cost burden, which has weighed on margins, leading to gradual margin recovery.

The Company has also taken meaningful steps to improve capitalization, with proceeds from land disposals strengthening Tier-1 equity and enabling partial debt retirement, leading to improved gearing and leverage levels from FY25 highs. Additional plans are also underway to improve capitalization. Liquidity pressures, stemming from high working-capital needs in a weak demand environment, are set to ease on the back of gains in operational efficiency. Moreover, reduction in finance costs, due to lower interest rates and debt repayment, a robust order book, and improved construction sector confidence could boost profitability and debt coverage profile.

For further information on this ratings announcement, please contact at 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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright December 19, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.