Press Release
VIS Assigns Initial Entity Ratings to Brentwood Hospitality (Private) Limited
Karachi, July 01, 2025: VIS Credit Rating Company Limited (VIS) assigns initial entity ratings to Brentwood Hospitality (Private) Limited (“BHPL” or “the Project’’ or “the Company”) of '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 a good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. The outlook on the assigned ratings is “Stable”.
BHPL is a wholly owned subsidiary of Al-Feroz (Private) Limited (“AFPL” or “the Holding Company”), together forming the Al-Feroz Group, which specializes in real estate. BHPL is currently a single project company, undertaking the development of a premium hotel and serviced apartments project located in Sky Towers – East Wing within Dolmen City, Karachi. The project is positioned to cater to the upper segment, targeting both business and leisure travelers with a portfolio that includes projects such as Brentwood Signature-27 and Grand Bazaar. AFPL also has ownership stake in Sky Towers, the Corporate Offices Block (both in Dolmen City), Dolmen Malls (Tariq Road and Hyderi) and Dolmen City REIT.
Assigned ratings incorporate moderate sector risk while taking into account the project's location in a high-footfall commercial area, along with its affiliation with an international hospitality brand, which is expected to support market positioning and revenue potential. The project remains in the development phase with execution risk persisting until construction is completed and operations commence, which is expected within two years as per management estimates. Development risks are mitigated as the project’s structural framework, including core and shell construction, has been completed, with only the fit-out phase pending.
The ratings are underpinned by sponsor commitment from AFPL, demonstrated through both asset contributions and financial assistance during the initial debt servicing period. AFPL has been assigned a rating of A+/A1. This support is viewed as a key mitigant to risks arising from the projected financial profile
Assigned ratings also consider the financial risk profile of the Company. The capital structure is expected to be funded primarily through sponsor equity (65%), with the remainder financed by external debt (35%). Revenue generation is projected to be diversified, with a significant portion expected from food and beverage services, followed by hotel operations and banquet services. Financial risk remains elevated due to projected occupancy assumptions and the commencement of debt servicing in the initial year of operations. Liquidity is expected to remain under pressure, given the absence of a cash cushion and reliance on external funding during early operational stages. Sponsor commitments to support early-stage debt obligations provide comfort to the capitalization and coverage profile. However, a significant dependency on the food segment and limited operational history in the hospitality sector present additional challenges.
Going forward, the ratings will remain linked to the timely execution of the project and commencement of operational cashflows, supported by the continued availability of sponsor commitment to address potential cost overruns and to provide debt servicing support, if required.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf