Press Release
VIS has Finalized Instrument Rating to RYK Mills Limited’s Short Term Sukuk
Karachi, April 22, 2025: VIS Credit Rating Company Limited (VIS) has finalized instrument rating at ‘’A1’’ (A One) of the Short Term Sukuk (STS) issue of RYK Mills Limited (RYKML or the Company). Finalization of the rating is supported by confirmation of successful issue of the STS along with receipt of clean legal opinion regarding execution and enforceability of the underlying documentation. The short-term rating of A1 indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The Company has an entity rating of A/A2.
RYKML has issued an unsecured, rated, privately placed STS of PKR 3.0 bln on February 11, 2025. The proceeds from the issue will be utilized to finance the working capital requirements of the Company. The STS employs a Musharakah structure, relying on Shirkat-ul-Aqd. Tenor of the STS is six (06) months from the date of drawdown, while the profit rate is set at 3M KIBOR plus a spread and is payable at the time of the maturity of the Sukuk along with the principal payment.
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
Rating the Issue
https://docs.vis.com.pk/docs/Rating-the-Issue-Aug-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf