Press Release

VIS Credit Rating Reaffirms Entity Ratings of Shifa International Hospitals Limited

Karachi, December 29, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Shifa International Hospitals Limited (Shifa) at ‘AA-/A-1’ (Double A Minus/ A-One). The medium to long term rating of ‘AA-’ signifies high credit quality; protection factors are strong. Risk is moderate but may vary slightly from time to time because of economic conditions. The short-term rating of ‘A-1’ depicts high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned rating is ‘Stable’. The previous rating was announced on November 18, 2021.

The ratings assigned to Shifa take into consideration the clinical reputation of Shifa as a large private healthcare organization within northern region of the country and ample experience of senior management team. The ratings draw comfort from Shifa’s unique positioning, vis-à-vis other large hospitals, as an integrated health system providing primary, secondary, tertiary and quaternary healthcare services with the hospital specializing in high acuity cases. The ratings also incorporate broad services array and scale of operations, as well as significant expansion plans over the next three years, involving establishment of large-scale hospital in Faisalabad. Business risk profile is considered to be medium to low given limited demand cyclicality in healthcare services sector and growing demographic trends of Pakistan. However, deficit of human capital in the industry is considered a business risk factor. Underpinned by growing demand for healthcare services, the company has generated sustainable revenue growth on a timeline basis. Growth momentum in operating revenue was experienced during the rating review period due to resumption in OPD services post pandemic closures. The ratings also factor in sound financial risk profile underpinned by comfortable FFO to total debt, adequate debt service coverage, sizable cash position and scaled down leverage indicators. Going forward, the ratings remain dependent on timely completion of ongoing project without major cost escalation, projected uptick in revenues and maintenance of leverage indicators at around current levels.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmad

Applicable rating criterion: Corporates (August 2021)

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