Press Release

VIS finalizes Short Term Rating of Short Term Sukuk 2 of At-Tahur Limited

Karachi, August 1, 2025: VIS Credit Rating Company Limited (VIS) has finalized short term rating of ‘A1’ to At-Tahur Limited (‘PREMA or ‘the Company’) Short Term Sukuk 2 (‘STS 2’ or ‘the Instrument’). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Previous rating action was announced on May 05, 2025. The outstanding entity ratings of PREMA are at ‘A-/A2’ (Single A-minus/A Two) with ‘Stable’ outlook.

PREMA is involved in farming operations since 2008. The Company 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 and cheese, etc.

PREMA has issued a short-term, secured, privately placed Sukuk amounting to Rs. 750m inclusive of a Green Shoe Option of Rs. 150m. The issue is being utilized by PREMA to meet its working capital requirements. STS 2 was issued on June 02, 2025. The instrument has tenure of up to six months starting from the issue date and profit will be payable at maturity of STS 2 on the outstanding principal amount. Profit payment rate is 6M Kibor + 1.5% per annum.

Assigned rating reflects the security structure of the instrument 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. Debt servicing coverage and leverage ratios, although within adequate range, were impacted by increase in borrowings.

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

Instrument Rating Methodology
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.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 August 01, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.