Press Release

VIS Reaffirms Entity Ratings of Fast Cables Limited

Karachi, December 17, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Fast Cables Limited (FCL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ signifies good credit quality with strong protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 27, 2018.

The ratings assigned to FCL take into account its position as one of the significant cable and wiring manufacturers in terms of market share. The ratings draw comfort from positive momentum in sales, higher profit margins and adequate coverages. The management’s focus on product diversification and improving operational efficiencies augur well for the company. Albeit, inherent business risk pertaining to volatility in raw material prices and rupee depreciation is considered manageable, the same remains an important factor for the ratings. Being imperative rating drivers, liquidity and debt leverage needs to be monitored closely, going forward.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at (042-35723411-13, Ext. 8004) and/or the undersigned at (021-35311861-66, Ext. 201) or email at info@vis.com.pk


Jamal Abbas Zaidi
Advisor

Applicable rating criterion: 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 December 17, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.