Press Release
VIS Reaffirms Entity Ratings of Fatima Fertilizer Company Limited
Karachi, October 16, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Fatima Fertilizer Company Limited (‘FATIMA’ or ‘the Company’) at ‘AA+/A1+’ (Double A Plus/A One Plus). The medium to long-term rating of ‘AA+’ denotes high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. The short-term rating of ‘A1+’ signifies strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned rating is Stable. The previous rating action was announced on August 11, 2025.
FATIMA is a joint venture between the Fatima Group and Arif Habib Group. Headquartered in Lahore, the Company is engaged in the manufacturing, production, buying, selling, importing and exporting of fertilizers and chemicals. FATIMA produces Ammonia and Nitric Acid as intermediate products, while its manufactured fertilizer products comprise Urea, Calcium Ammonium Nitrate (CAN) and Nitro Phosphate (NP). Its marketed product portfolio includes Sarsabz Nitrophos, Sarsabz CAN, Sarsabz and Bubbersher Urea, and Sarsabz and Bubbersher DAP. The Company operates three manufacturing facilities across Punjab, with cumulative nameplate fertilizer production capacity of ~2.57 million MT per annum.
The assigned ratings reflect FATIMA’s strong position in the domestic fertilizer sector, supported by its diversified product portfolio, established market presence, particularly in CAN and NP, alongside its continued presence in Urea. The Company’s operating perimeter changed following the transfer of the Sheikhupura plant to Fatimafert Limited effective July 1, 2024, and the subsequent transfer of the Multan plant to Pakarab Fertilizers Limited effective January 1, 2025. Both plants were shifted from PPE to Long-term Investments as wholly owned subsidiaries.
The financial risk profile remains conservative, supported by a sizeable equity base, lower debt levels at end-1HCY26 and adequate liquidity. Profitability remained resilient, supported by a favorable product mix and pricing. While the funding mix has shifted towards short-term borrowings, the Company continues to maintain substantial liquid assets relative to its debt obligations. The diversified investment portfolio also provides an additional source of financial flexibility, while remaining complementary to the Company’s core operations. Coverage metrics moderated following the change in operating perimeter and associated earnings base. While the reduction in debt has provided support to the financial risk profile, the lower FFO resulted in weakening in FFO-to-total debt. However, the overall financial profile remains supported by conservative capitalization profile and strong asset base.
Going forward, continued cash flow generation and maintenance of a prudent debt profile are expected to remain supportive of the ratings.
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/Methodologies-2026/Corporate-Rating-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf