Press Release
VIS Reaffirms Entity Ratings of Garibsons (Private) Limited
Karachi, February 24, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Garibsons (Private) Limited (‘GSPL’ 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' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on March 19, 2025.
GSPL is a family-owned business established in 1976 and is the largest exporter of premium-quality rice from Pakistan. The Company is primarily engaged in rice husking, reprocessing, steaming, and parboiling, with a portfolio that includes export and local sales of Basmati and Non-Basmati Rice.
The assigned ratings reflect GSPL’s established position in Pakistan’s rice export sector, supported by its long operating history, diversified processing footprint, and established international client relationships. The ratings factor in the volatility inherent in the rice export sector, driven by global pricing dynamics, trade policy developments, and demand fluctuations. Following the exceptional performance in FY24, sector normalization and intensified competition led to a significant decline in sales volumes and pricing pressure in FY25 and 1HFY26, particularly in the non-basmati segment. The contraction in sales volume was sharper for GSPL in FY25 versus the overall export trends for the country.
Despite topline contraction in FY25, profitability metrics were supported by improved inventory management and lower finance costs amid easing interest rates. Debt servicing capacity improved accordingly. However, the Company’s financial profile experienced pressure due to a sharp increase in short-term borrowings in 1HFY26, resulting in weakened gearing, and short-term debt coverage indicators. While liquidity remains adequate, the widening cash conversion cycle reflects elevated working capital requirements.
Going forward, maintenance of adequate liquidity and debt coverage metrics, alongside improvement in capitalization indicators and moderation in short-term borrowings, will remain important for the assigned ratings. The Stable Outlook reflects expectations of continued operational resilience despite ongoing sector headwinds.
For further information on this rating 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