Press Release
VIS Assigns Initial Entity Rating to Security Organizing System Pakistan (Pvt.) Limited
Karachi, August 01, 2025: VIS Credit Rating Company Limited has assigned initial entity ratings of ‘A-/A2’ (Single A Minus/A Two) assigned to Security Organizing System Pakistan (Pvt.) Limited. Long Term Rating of ‘A- denotes good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short Term Rating of ‘A2’ signifies good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable’.
Security Organizing System Pakistan (Pvt.) Limited (‘SOS’), incorporated in 1994 and headquartered in Multan is a family-owned private limited company. Over three decades, SOS has evolved into one of Pakistan’s leading integrated security service providers, operating from 63 offices nationwide. The Company holds valid licenses to operate across all regions of Pakistan, including Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan and Azad Jammu & Kashmir. The Company delivers a full suite of physical and cash-handling solutions – Cash in Transit (CIT), Guarding, ATM Replenishment (ATMR) and Cash Processing Cell (CPC) services to clients, namely financial institutions.
Pakistan’s private security services industry remains essential amid persistent security concerns and high cash usage, with PKR 9.2 trillion in circulation by end-FY24 and over 17,700 bank branches and 20,000 ATMs requiring protection as of 9MFY25. Regulatory mandates from the SBP and ongoing infrastructure expansion sustain demand for CIT, guarding and ATM-related services. However, the sector faces challenges including high labor turnover, wage inflation and rising compliance costs. Operational risks in CIT, especially in remote areas, add to cost pressures. While larger players lead in scale and capability, smaller firms may struggle with the capital needed for technological upgrades now reshaping the industry.
The ratings reflect SOS’s sound financial risk profile, sustained revenue growth and solid positioning within the industry. The Company benefits from structural demand drivers such as macroeconomic growth, urbanization, high currency circulation and regulatory mandates for physical security – particularly in the banking sector. However, the rising adoption of digital and online payment platforms may gradually influence long-term demand for cash-handling services. SOS maintains a conservative capital structure, with moderate debt levels largely tied to fleet expansion. Strong internal controls, ERP-enabled reporting, and ISO9001:2015 certification underpin the Company’s operational governance. While revenue is concentrated among a few clients, counterparty risk remains limited due to established, long-term relationships with financially sound commercial banks.
For further information on this ratings announcement, please contact 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