Press Release
VIS Reaffirms Entity Ratings of Orient Electronics (Pvt) Limited
Karachi, June 1, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Orient Electronics (Pvt) Limited (‘OEL’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). The 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. 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 remains ‘Stable’. Previous rating action was announced on May 9, 2025.
The reaffirmation of entity ratings takes into account OEL’s position as a well-established name in consumer appliances segment and modest improvement in financial parameters due to better demand conditions. OEL is one of the leading manufacturers of air conditioners and refrigerators in an intensely competitive market. Assigned ratings take note of the impact of macroeconomic factors, cyclicality and import restrictions playing a key role on the business risk profile of consumer appliances manufacturers as localization remains limited. The Company recorded healthy growth in net sales on the back of higher volumes amidst recovery in demand, while overall profitability improved in the ongoing year. Debt coverage ratios have also shown improvement in FY25 and 9MFY26 with gearing also decreasing due to debt repayment. Liquidity remains largely stable. The ratings hinge on sustained growth in bottom line, continued upward trend in debt coverages alongside improvement in leverage ratio.
For further information on this ratings announcement, please contact at 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