Press Release
VIS Reaffirms Entity Rating of Image Pakistan Limited
Karachi, May 13, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Image Pakistan Limited (‘Image’ or the ‘Company’) at ‘A-/A2’ (Single A minus/ 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 assigned ratings remains ‘Stable’. Previous Rating action was announced on April 15, 2025.
Incorporated in 1990, Image Pakistan Limited (formerly known as Tri-Star Polyester Limited) is a public limited (listed) company. Image specializes in manufacturing and sale of premium, value-added embroidered garments, including unstitched and ready-to-wear female apparels.
The assigned ratings reflect Image Pakistan’s established brand presence and a well-defined positioning in the local fashion landscape. The Company’s ability to align product offerings with prevailing fashion trends, alongside its growing retail footprint, underpins its continued topline expansion, despite a challenging macroeconomic environment. The ratings reflect the high to moderate business risk profile of Pakistan’s retail clothing sector, driven by inflationary pressures that have weakened consumer purchasing power, leading to subdued demand, heightened price sensitivity, coupled with relatively elevated fixed cost structure. However, the sector’s growth is supported by rising demand for ready-to-wear apparel, driven by shifting consumer preferences towards fast fashion, due to urbanization, convenience, affordability, and rise of e-commerce.
The Company’s financial risk profile is supported by a satisfactory capital structure, while coverage indicators remain robust, as reflected in a healthy DSCR. Liquidity, however, continues to present a constraint, largely on account of elevated inventory levels, which have lengthened the cash conversion cycle and tied up working capital. Management has outlined plans to address the inventory buildup and normalize turnover levels over the medium term. Going forward, a sustained improvement in the liquidity profile, alongside the maintenance of a prudent capital structure, will be important from ratings perspective.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
VIS 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