Press Release

VIS Assigns Final Rating to Short Term Sukuk-1 of Pakistan Cables Limited

Karachi, May 13, 2026: VIS Credit Rating Company Limited (VIS) has assigned final rating of ‘A1’ to Pakistan Cables Limited’s (‘PCAL’ or ‘the Company’) Short Term Sukuk-1 (STS-1). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The entity ratings of PCAL stand at ‘A/A1’ (Single A/A One). Outlook on the assigned medium to long-term rating is ‘Stable’.

PCAL issued a privately placed, unsecured Short-term Sukuk (STS 1) of Rs. 4,000 million (inclusive of a Green Shoe Option of Rs. 1,500 million) on 06 May 2026 to fund working capital requirements. The instrument has a six-month tenure, with profit paid quarterly and redemption in bullet at maturity, while the profit rate is based at 3 Month KIBOR plus + 90 BPS. A dedicated Sukuk Payment Account (SPA) under lien with Investment Agent, is to be built up and completely funded 4 working days before installment payment date.

The assigned rating reflects PCAL’s established presence in the wires and cables sector, its association with the Amir S. Chinoy Group, and the Company’s strengthened risk profile. Key credit support stems from the operational scale-up at the fully integrated Nooriabad facility, which enhances capacity, cost efficiency and backward integration, and capitalization improvements through land disposals and partial debt retirement, which have slightly improved gearing and leverage. Liquidity pressures, driven by high working-capital requirements, are expected to moderate as operational efficiencies materialize, debt servicing costs decline, and project-sector demand, particularly from renewable energy and solarization initiatives, improves. Overall, the Sukuk is expected to support working capital while benefiting from strong operational fundamentals, improving cash flows, and continuing group support.

For further information on this ratings announcement, please contact at 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

Instrument Rating:
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.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 May 13, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.