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Press Release

VIS Maintains Ratings of International Steels Limited

Karachi, March 12, 2021: VIS Credit Rating Company Limited has maintained the entity ratings of ‘A+/A-1’ (Single A Plus/A-One) assigned to International Steels Limited (ISL). The long term rating signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-1’ depicts high certainty of timely payment where liquidity factors are excellent and supported by good fundamental protection and minor risk factors. Previous rating action was announced on October 20, 2020.

ISL was placed on a ‘Rating Watch - Negative’ in October 2020 on account of the cash flow coverage indicators sliding below the threshold for the assigned rating. However, the increased steel demand witnessed in H1’FY21, has translated in significant improvement in turnover and profitability, while debt has been notably reduced, translating in much better cash flow coverage indicators. In view of the same, the outlook has been revised to ‘Stable’.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or Mr. Arsal Ayub (Ext: 215) at 021-35311861-71 or fax to 021-35311872-3.



Faryal Ahmed Faheem
Deputy CEO

Applicable Rating Criteria: Industrial Corporates (May 2019)
https://www.vis.com.pk/kc-meth.aspx

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 March 12, 2021 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.