Press Release
VIS Finalizes Rating of Short Term Sukuk-1 (STS-1) of The Searle Company Limited
Karachi, November 03, 2026: VIS Credit Rating Company Limited (VIS) has finalized a rating of ‘A1(A One) to the Short Term Sukuk-1 (STS-1) Issue of PKR 2,250mn of The Searle Company Limited (‘TSCL’ or the ‘Company’). The short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The entity rating of TSCL is ‘AA-/A1’ (‘Double A Minus/A One’) with a ‘Stable’ outlook. The previous rating action was announced on August 25, 2026.
TSCL is engaged in the manufacturing and marketing of pharmaceuticals and other consumer healthcare products. TSCL has issued a privately-placed short-term Sukuk, amounting to PKR 2,250mn. The proceeds from the issue are to be utilized for the Company’s working capital requirements. The instrument has a tenor of 6 months and carries a profit rate of 3-month KIBOR plus 75bps, with both profit and principal payable through a single bullet payment at maturity.
TSCL will establish and maintain a Sukuk Payment Account (SPA) under lien, which shall be funded in the last 1 month of Sukuk maturity. The SPA shall be completed at least 7 days before the Maturity Date of March 15th 2027; 10% of the issue size to be funded within 30 days, 40% of the issue size to be funded within 15 days and 50% of the issue size to be funded within 7 days. Investment Agent for the Sukuk is Pakistan Kuwait Investment Company (Private) Limited.
The assigned rating reflects TSCL’s established position in Pakistan’s pharmaceutical sector, supported by its portfolio of well-recognized brands, diversified therapeutic offerings and stable demand for pharmaceutical products. The Company’s association with the IBL Group provides strategic support through established distribution network and management expertise, with a substantial portion of the Company’s products distributed through an associated company having countrywide distribution network.
The rating takes into account the recovery in profitability. The return to profit in FY25 largely reflected a substantially lower impairment charge and reduced finance costs, while underlying operating profit declined. In 9MFY26, stronger sales, improved product availability, pricing adjustments and a more favorable product mix drove a marked improvement in gross margins and earnings. The planned expansion into biological products and GCC markets offers further diversification, although sustained contributions from these initiatives remain to be established.
Financial risk has improved following the repayment of acquisition-related debt, resulting in a more conservative capital structure, stronger debt coverage and improved cash generation. The rating remains sensitive to the sustainability of operating margins, management of imported input costs and working capital, and the impact of planned capital expenditure on the Company’s financial profile.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Ratings
https://docs.vis.com.pk/Methodologies-2026/Corporate-Rating-2026.pdf
Instrument Ratings
https://docs.vis.com.pk/Methodologies-2026/IRM-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf