Press Release
VIS Reaffirms Entity Ratings of Aisha Steel Mills Limited
Karachi, March 16, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Aisha Steel Mills Limited (‘ASL’ or ‘the Company’) at ‘BBB+/A2’ (Triple B plus/A Two). Medium to long term rating of 'BBB+' indicates adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short-term rating of 'A2' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on December 23, 2024.
ASL was incorporated in Pakistan in 2005 as a public limited company, commencing commercial operations in 2012. The Company's shares are listed on Pakistan Stock Exchange (PSX). It is involved in the manufacturing and sale of cold rolled coils and hot-dipped galvanized coils. Located at Port Qasim, Karachi, the Company primarily meets local demand with improving exports to various international destinations, including North America, Asia, Africa, Europe, and the Middle East. ASL derives demand from the automobile, engineering, and appliances industries. ASL is part of the Arif Habib Group, a leading industrial and financial conglomerate in Pakistan with diversified interests across financial services and multiple industrial sectors, including fertilizers, cement, steel, real estate, energy, and textiles. The Group maintains an established market presence and has a demonstrated track record of developing and supporting large-scale industrial ventures.
The assigned ratings reflect the Company’s established position in Pakistan’s flat steel sector and its association with the financially strong Arif Habib Group. The Company benefits from an experienced management team, structured governance framework, and diversified end-user exposure across automotive, engineering, and appliances segments. Sponsor support has remained evident through sizeable equity injections, strengthening the balance sheet and supporting liquidity during periods of stress.
The business risk profile remains constrained by reliance on imported hot rolled coil, exposure to international price volatility, and competition from low-priced imports. Demand is closely linked to macroeconomic conditions and industrial activity, particularly the automotive sector. However, recent regulatory measures aimed at curbing unfair imports and improving domestic competitiveness, along with stabilization in key economic indicators, have supported recovery in volumetric sales, while export contribution has provided some revenue diversification.
Profitability weakened in the preceding year amid pricing pressures and subdued demand, leading to margin compression and net losses. Performance has improved in the current period, supported by higher volumes, improved spreads, and lower finance costs, resulting in a modest return to profitability.
The financial risk profile has strengthened with debt reduction and additional equity through sponsor support, improving gearing, leverage, and debt servicing capacity. Liquidity has also improved, reflected in better short-term coverage metrics and reduced reliance on short-term borrowings. The ratings remain sensitive to sustained improvement in profitability, liquidity, and coverage indicators.
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