Press Release

VIS Reaffirms Entity Ratings of Shifa International Hospitals Limited

Karachi, February 1, 2024: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed entity ratings of Shifa International Hospitals Limited ('Shifa' or 'the Company') to 'AA-/A-1' ('Double A minus/A-One'). Medium to long term rating of 'AA-' indicates 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 high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings remains ‘Stable’. Previous Rating action was announced on December 29, 2022.

Shifa International Hospitals Limited was incorporated in Pakistan in 1987 as a private limited company and subsequently converted into a public limited company in 1989. The shares of the Company are quoted on Pakistan Stock Exchange Limited ('PSX'). The registered office of the Company is situated at Sector H-8/4, Islamabad. Principal activity of the Company is to establish and run medical centers and hospitals in Pakistan. The Company established its first hospital in 1993 in H-8/4 Islamabad, second hospital in 2011 in Faisalabad and another in 2014 in G-10/4 Islamabad. The Company is also running medical centers, lab collection points and pharmacies in various cities across Pakistan.

Assigned ratings incorporate the consistent topline growth demonstrated by Shifa Hospital, fueled by an increase in patient flow/volume and price adjustments. The hospital's occupancy rate, reaching 63% in FY23, further supports its operational profile. Despite cost pressures arising from inflation and currency devaluation, Shifa Hospital has managed to maintain its profitability.

Ratings also consider Shifa Hospital's liquidity profile, supported by substantial cash holdings. Furthermore, the Company's conservative capitalization profile, supported by sufficient cash generation from operations to meet working capital and capital expenditure needs, resulting in minimal debt utilization, is also incorporated in the assigned ratings. Investments in subsidiary and associated companies form a sizeable portion of total asset base. Execution of investment plans will remain important for ratings.

Going forward, maintenance of operational efficiencies together with augmentation of revenue streams while maintaining capitalization metrics will remain important for ratings.

For further information on this ratings announcement, please contact Saeb Muhammad Jafri at 021-35311861-64 (Ext. 202) and/or the undersigned at 021-35311861-64 (Ext. 207) or email at

Sara Ahmed

Applicable Rating Criteria: Corporates:
VIS Issue/Issuer Rating Scale

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