Press Release
VIS Reaffirms Entity Ratings of International Steels Limited
Karachi, November 21, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of International Steels Limited at ‘A+/A1’ (Single A plus/A one). Medium to long term rating of ‘A+’ indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on Oct 29, 2024.
Incorporated in Sept 2007, International Steels Limited (‘ISL’ or ‘the Company’) is a publicly listed company and is engaged in the manufacturing of cold-rolled, galvanized and color-coated coils and sheets, with its production facilities and Registered office located in Karachi. It operates as a subsidiary of International Industries Limited (IIL), which maintains 56.34% ownership stake and thus part of the Amir S. Chinoy Group, which has diversified operations in the industrial sector of Pakistan. Company’s key shareholders also include highly rated foreign entities namely ‘Sumitomo Corporation’ (9.08%), which has representation on its board, and ‘JFE Steel Corp’ (4.74%) - both of which maintain commercial ties with ISL as its key suppliers, underscoring their strategic interest in the Company’s operations.
Assigned ratings reflect the business profile of ISL as a prominent and well-established player in the flat-steel sector, supported by a strong sponsor and governance profile. The industry remains inherently cyclical, with performance linked to imported raw-material availability, exchange-rate movements and energy costs; however, ISL’s growing product palette and prudent risk management have enabled it to maintain relative stability within a challenging competitive landscape. Sector conditions, while still demanding, are showing early signs of normalization, aided by an improving macroeconomic backdrop, easing global steel input prices and the phased withdrawal of FATA/PATA sales-tax exemptions, which is expected to restore a more competitive field during FY26.
Ratings also incorporate ISL’s sound financial risk profile, reflected in a stronger capitalization base, conservative leverage and healthy debt-service coverage. During FY25, margins were temporarily compressed due to lower fixed cost absorption under subdued demand; however, the Company’s liquidity position remained solid, supported by efficient working capital management and strong banking relationships. Going forward, topline is projected to strengthen in line with recovering domestic demand and sustained export activity, while profitability is expected to improve on account of lower raw-material costs, enhanced energy efficiency following the commissioning of the solar project and operating-cost savings from the rollout of the new integrated IT and process-automation systems.
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