Press Release
Update on Ratings of Orient Electronics (Pvt.) Limited
Karachi, March 17, 2022: VIS Credit Rating Company Limited (VIS) has maintained the medium to long-term entity rating of Orient Electronics (Pvt.) Limited (OEL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound.
OEL is a reputed manufacturer of home appliances in Pakistan. Shareholding is vested with the sponsoring family who have over six decades of experience in the consumer electronics industry. This update captures the incidence of fire eruption at plant facility of OEL, on February 23, 2022. According to the information provided by management, the fire was at the warehouse of finished goods inventory related to refrigerators which carried insurance cover. Given around one-third of the company’s revenue emanates from refrigerators, largely sold in the ongoing season, some impact may occur on the revenue stream which would be assessed in our review, going forward, when complete information is available. The management is of the view that the impact would be minimal. Please note that ratings of OEL have already been placed on ‘Rating Watch- Developing’ status due to impending demerger scheme since the last rating action announced on August 25, 2021. VIS will continue to monitor further developments in regard.
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. 306) or email at info@vis.com.pk
Faryal Ahmad Faheem
Deputy CEO
Applicable rating criterion: Corporates (August 2021)
https://docs.vis.com.pk/docs/CorporateMethodology202108.pdf