Press Release

VIS Reaffirms Ratings of Bunny’s Limited

Karachi, February 1, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Bunny’s Limited (BL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payment coupled with sound company fundamentals and liquidity factors. The previous rating action was announced on December 31, 2020.

The ratings assigned to BL take into account the company’s moderate business risk profile owing to presence in fast moving consumer goods market and largely established brand name. The ratings incorporate growth in topline on the back of volumetric increase and higher prices. Overall liquidity position is considered adequate, however, debt service coverage decreased during the outgoing year, owing to higher long-term repayments on account of early retirement of some loans. Leverage indicators, albeit increased, remained comfortable despite increase in borrowings. The ratings will remain dependent on improving cash flow coverages and maintaining capitalization indicators at adequate levels. The management has embarked upon increasing automation to improve operational efficiencies, and also enhance capacities and expand distribution network at the same time. Meanwhile, the ratings derive comfort from projected growth in revenues driven by increasing demand and higher capacities. The increasing cost due to higher inflation and increase in benchmark rates may put some pressure on profit margins. Materialization of in-progress capacity enhancement, BMR plans and achieving projected growth in revenues will be important for the assigned ratings, going forward.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 306) or email at

Faryal Ahmad Faheem
Deputy CEO

VIS Entity Rating Criteria: Corporates (August 2021)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited