Press Release

VIS Reaffirms Entity Ratings of Al-Feroz (Private) Limited

Karachi, August 17, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings Al-Feroz (Private) Limited (‘AFPL’ or ‘the Company’) at ‘A+/A1’ (Single A Plus/A One). The 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. The short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on July 1, 2025.

Reaffirmation of the Company’s entity ratings is supported by its strong financial risk profile, anchored by a prominent sponsor pedigree with over 34 years of real estate development experience and ongoing developments in major projects alongside several future strategic investments currently in the planning phase. The Company continues to maintain a highly conservative capital structure characterized by zero debt obligations. By funding its marquee commercial and residential portfolio entirely through internal equity, AFPL secures robust liquidity management and a healthy cash cushion. While core profitability is well-supported by resilient, growing rental income and dividend streams, recent net income spikes remain exposed to market-driven, non-cash fair value gains from its substantial Dolmen City REIT holding. Looking forward, the ratings will remain sensitive to systemic real estate headwinds in Pakistan, such as elevated construction input costs and overall subdued demand. These macroeconomic pressures have triggered localized challenges, including a relatively slow sales offtake at the recently completed Signature-27 project. Additionally, managing tight commercial timelines for the flagship hospitality venture remains critical. Ratings also depend on continued strengthening of cash flows, expanding the equity base, and maintaining the current near-unlevered profile.

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 August 17, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.