Press Release
VIS Reaffirms Entity Ratings of Century Paper & Board Mills Limited
Karachi, July 01, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Century Paper & Board Mills Limited (‘CPBML’ or the ‘Company’) at ‘AA-/A1’ (Double A Minus/ A One). Long term rating of ‘AA-’ signifies 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’ depicts strong likelihood of timely repayment of short-term obligations with excellent liquidity factors Outlook on the assigned rating is ‘Stable’. The previous rating was announced on May 22, 2025.
CPBML, the flagship Company of the Lakson Group, was incorporated in 1984 and commenced commercial production in 1990. It manufactures a wide range of Paper and Paperboard products, including Coated and Uncoated Boards, Writing and Printing papers, Machine-glazed papers, and Corrugated Cartons. The Company operates superior quality Corrugated Cartons facility, catering to industries such as FMCG, Home Appliances, and Tobacco. CPBML emphasizes sustainability through use of recycled fiber and energy-efficient processes. Its operations are supported by an Oracle-based ERP system.
The ratings assigned to CPBML reflect its established market position in Pakistan's paper and paperboard industry, supported by its affiliation with the Lakson Group, integrated operations, experienced management, and sound governance framework.
The operating environment remained challenging during the review period due to weak domestic demand, intense import competition, and limited pricing flexibility, resulting in lower revenues, compressed margins, and weaker earnings despite ongoing operational efficiency initiatives. Consequently, cash flow generation, debt servicing capacity, and liquidity indicators weakened, while reliance on short-term borrowings increased. Nevertheless, the Company's sizeable equity base, established banking relationships, financial flexibility, and continued sponsor support provide comfort against refinancing and liquidity risks.
Continued sponsor support is an important rating consideration. The ratings will continue to be driven by sustained improvement in profitability and cash flow coverages. The latest measures announced by the National Tariff Commission on imported Coated Bleached Board to provide level playing field to domestic industry, if implemented, may improve the competitive environment for local players.
For further information on this rating 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