Press Release

VIS Updates Entity Ratings of Kompass Pakistan (Pvt.) Limited

Karachi, October 01, 2025: VIS Credit Rating Company Limited (‘VIS’) has updated the entity ratings of Kompass Pakistan (Pvt.) Limited (‘KPL’or ‘the Company’) at ‘BBB+/A2’ (Triple B Plus/ A Two). The medium to long-term rating of ‘BBB+’ signifies adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. The short-term rating of ‘A2’ denotes good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on April 07, 2025.

Kompass Pakistan (Pvt.) Ltd. (“KPL’’ or “the Company”) is a family-owned company primarily engaged in the manufacturing of flexible packaging materials including wrappers, bags, pouches and other laminated plastic packaging products which are utilized mainly by the Fast-Moving Consumer Goods (FMCG) industry. KPL has a fully integrated packaging facility in which it extrudes polyethylene films and procures Biaxially Oriented Polypropylene Films (BOPP), biaxially oriented polyethylene terephthalate (BoPET) and Cast Polypropylene (CPP films) from the local market which are then printed and laminated in accordance with the customer needs. The Company has two types of printing- (i) Rotogravure & (ii) Flexographic, specializing in both technologies.

The assigned ratings take into account Kompass Pakistan Private Limited’s market position in the sustainable packaging segment, supported by a diversified customer base and long-term supply arrangements with leading FMCG players. Recent initiatives, including the acquisition of Merit Packaging Limited’s flexible packaging division and investment in advanced flexo-printing technology, are expected to enhance production efficiency and strengthen the Company’s product offering. Ratings are supported by a sound liquidity profile and adequate debt coverage; however, constraints due to modest profitability, limited topline growth, elevated leverage, and customer concentration persist. Amidst, sector-wide challenges, including intense competition and rising cost pressures, gradual strengthening of margins and capitalization metrics will be important for ratings.

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

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 October 01, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.