Press Release

VIS Reaffirms Entity Ratings of OBS AGP (Private) Limited

Karachi, December 08, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of OBS AGP (Private) Limited (‘OBS AGP’ or the ‘Company’) at ‘A/A1’ (‘Single A/A One’). 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 ‘A1’ indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on October 31, 2024.

The ratings reflect OBS/AGP Group’s established position as one of Pakistan’s leading healthcare conglomerates, supported by a strong local footprint and an expanding regional presence. The pharmaceutical sector’s business risk profile remains Medium to Low, anchored by stable demand and low cyclicality, although regulatory uncertainty and volatility in imported input costs continue to present challenges. OBS AGP product mix remains concentrated; however, flagship brands such as Azomax and Zatofen maintain strong market shares within their therapeutic classes, partially mitigating concentration risk. Profitability improved during the year, driven by higher sales volumes, favorable pricing dynamics, and lower finance costs amid a more accommodative interest-rate environment. Capitalization strengthened through earnings retention and debt reduction, resulting in improved gearing and leverage indicators. Liquidity, while constrained by elevated current liabilities following the debt-financed acquisition, is supported by available unutilized working-capital facilities and backing from the parent company. Operational improvements have contributed to better cash-flow generation and stronger coverage metrics. Looking ahead, the ratings remain supported by sustained profitability, continued equity accretion, manageable leverage, and expectations of a gradual easing in liquidity metrics as acquisition-related obligations decrease.


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

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 December 08, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.