Press Release

VIS Upgrades Entity Rating of Agro Processors and Atmospheric Gases Limited

Karachi, October 20, 2025: VIS Credit Rating Company Limited (‘VIS’) has upgraded the medium to long-term entity rating of Agro Processors and Atmospheric Gases Limited (‘APAG’ or ‘the Company’) from ‘BBB+’ (Triple B Plus) to ‘A-’ (A Minus) while maintaining the short-term rating at ‘A2’ (A Two). The medium to long-term rating of ‘A-’ signifies good credit quality. Protection factors are improved. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. The outlook on the rating is ‘Stable’. Previous rating action was announced on September 11, 2024.

Agro Processors & Atmospheric Gases Limited (“APAG” or “the Company”) was Established in 1980. The Company's registered office and production plant are located in the Site Area, Karachi. APAG operates in both B2B and B2C markets. The Company manufactures and markets of high-quality branded edible oils, banaspati, margarine, industrial fats, and sauces under leading brands including Soya Supreme, Malta, Champion, Taqat, and Smart.

Revision in entity rating takes into account the overall improvement in the financial risk profile of the Company, amidst the high business risk associated with the edible oil sector. The sector’s risk is driven by its dependence on imported raw materials, lag in the pass-through of costs to consumers, low entry barriers, and the dominance of major players, which makes pricing strategy a challenge for smaller entities. At the same time, the ratings incorporate the Company’s market positioning, supported by its established brand portfolio and stronger profitability margins relative to peers. Capitalization indicators are considered adequate, with gradual improvement in gearing and leverage witnessed over time, although a slight uptick was noted in FY25. Debt coverage indicators have remained sound. Going forward, sustaining the current uptick in performance, along with maintaining healthy margins, debt coverage, and a low-leveraged capital structure, will remain important for the assigned 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 October 20, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.