Press Release

VIS Maintains Entity Ratings of Archroma Pakistan Limited

Karachi, September 03, 2024: VIS Credit Rating Company Limited (VIS) maintains entity ratings of Archroma Pakistan Limited (‘’APL’’ or ‘’the Company’’) at 'AA/A-1' (Double AA/A-One). Outlook on the assigned ratings have been revised from ‘Stable’ to ‘Negative’. The medium to long-term rating high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of 'A-1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Previous Rating action was announced on January 31, 2023.

APL incorporated in Pakistan as a public limited company and is publicly listed on the Pakistan Stock Exchange Limited (PSX). The Company's registered office is in Karachi. APL is a subsidiary of Archroma Textiles GmbH, based in Pratteln, Switzerland, which holds 75% equity stake in the Company. APL's operations include the manufacturing, importing, and distribution of chemicals, dyestuffs, coatings, adhesives, and sealants for various industries such as textiles, paints, paper, coatings, and constructions. The Company also serves as an indenting agent. Its manufacturing facilities are situated at Petaro Road, Jamshoro, and Landhi Industrial Area, Karachi, while its sales offices are located in Thokar Niaz Baig, Lahore, and Amin Town, Faisalabad.

The change in ratings outlook reflects weakening in the Company’s financial risk profile during MY23 and 1HMY24, driven by the inherent cyclicality and current slowdown in Pakistan's textile and construction sectors, which are key markets for APL. VIS believes an improvement in the overall macroeconomic conditions in Pakistan will benefit the local textile and construction industries, supporting potential recovery in the Company’s financial performance. VIS will continue to monitor the Company’s financial performance going forward.

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .