Press Release

VIS Assigns Preliminary Rating to Proposed Short Term Sukuk of At-Tahur Limited

Karachi, May 5, 2025: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘A1 (plim)’ to At-Tahur Limited (‘PREMA’ or ‘the Company’) proposed Short Term Sukuk (STS). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Entity ratings of PREMA stand at ‘A-/A2’ (Single A-minus/A Two). Outlook on the assigned entity rating of PREMA is ‘Stable’.

The Company is involved in farming operations since 2008 and introduced its brand ‘Prema’ in the market in 2009, launching premium quality pasteurized milk, and subsequently launched other products such as whole milk, low-fat milk, ranges of yogurt, laban & flavored milk, butter, cheese, eggs and honey.

PREMA plans to issue a short-term, secured, privately placed Sukuk amounting to Rs. 750m inclusive of a Green Shoe Option of Rs. 150m. This will be the Company’s second STS issuance (STS-2). STS-2 will have a tenure of up to six months starting from the issue date and profit will be payable at maturity of STS on the outstanding principal amount. Profit payment will be at a proposed rate of 6M Kibor + 1.5%. Moreover, the Company has outstanding Short-term Sukuk (STS-1) amounting to Rs. 750m, which is scheduled to mature in June, 2025.

Assigned rating reflects the proposed security structure of STS-2 providing a charge over and biological assets of the Company amounting to Rs. 750m with a 25% margin. In addition, maintenance of a Debt Payment Account provides comfort. Assessment of financial position of the Company reflects contraction in profitability, however there was improvement in liquidity metrics and debt servicing coverage while the Company maintained leveraged ratios within adequate range.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk

Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Rating the Issue
https://docs.vis.com.pk/docs/Rating-the-Issue-Aug-2023.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 May 05, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.