Press Release

VIS Assigns Initial Entity Ratings to Multan Chemicals Limited

Karachi, June 10, 2025: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A1’ (Single A Minus/A One) to Multan Chemicals Limited (‘MCL’ or the ‘Company’). The medium to long-term rating of ‘A-’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in 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 is ‘Stable’.

MCL is a family-owned business established in 1985 and is one of the leading manufacturers and suppliers of medical and industrial gases in Pakistan. The Company operates Air Separation Units in Faisalabad and Multan. MCL’s product portfolio includes medical-grade Oxygen, Nitrous Oxide, Carbon Dioxide, and Medical Air, along with industrial gases such as Nitrogen, Argon, Acetylene, and Ammonia. Additionally, the Company provides complete solutions for Medical Gas Pipeline Systems. MCL operates 20 company-owned filling stations and maintains a nationwide distribution network through 30 authorized distributors.

The Company’s production mix is heavily skewed toward oxygen, which constitutes about 90% of total output and primarily serves the healthcare and industrial sectors. The business risk is considered moderate, given the essential nature of oxygen supply in particular; however, exposure to fluctuations in energy costs and industrial demand remains a sensitivity. The ratings incorporate consistent production performance and a stable customer base in healthcare and industrial segments. Meanwhile, the financial risk is considered low marked by low leverage, healthy profitability, and sound liquidity indicators. Going forward, the Company’s ability to sustain operational performance and navigate sector-specific risks will remain critical from ratings perspective. There is also room for improvement in corporate governance framework.

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 June 10, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.