Press Release

VIS Reaffirms Entity Ratings of RYK Sugar Mills Limited

Karachi, February 13, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of RYK Sugar Mills Limited (‘’RYKML’’ or ‘’the Company’’) at ‘A/A2’ (Single A/A Two), 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 'A2' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Positive’. Previous rating action was announced on September 19, 2024.

RYKML is a public limited company incorporated in 2007. The Company’s registered office is located in Lahore Cantt, while its manufacturing facilities are situated in Rahim Yar Khan, Punjab. RYKML's business activities include the production and sale of sugar, ethanol, related by-products, as well as the generation and sale of electricity. RYKML has restructured its shareholding in Alliance Sugar Mills Limited via a Scheme of Arrangement and Reconstruction, under sections 282L and 284 to 287 of the Companies Act 2017, which has duly been approved by the Board of Directors. Alliance Sugar Mills Limited will be owned by Mr. Makhdum Omer Shehryar with the completion of all regulatory and court approvals.

Assigned ratings incorporate the business risk profile of the sugar sector, characterized by low exposure to demand cyclicality, but high sensitivity to sugarcane production levels and quality. The ratings of (RYKML reflect the Company’s established business profile, supported by its integrated operations, sizeable asset base, and relatively large crushing capacity. The Company’s strategic emphasis on operational efficiency, improved sourcing, and diversification into ethanol and power generation provides a degree of insulation against sector-specific volatility and underpins the sustainability of its market position. However, the financial risk profile remains comparatively elevated, with capitalization metrics increasing relative to industry peers. While demonstrated sponsor support offers some comfort, higher leverage levels heighten sensitivity to earnings volatility. Improvement in the same will remain important for ratings.

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

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 February 13, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.