Press Release

VIS Revises Entity Ratings of Agha Steel Industries Limited

Karachi, May 22, 2024: VIS Credit Rating Company Limited has revised the entity ratings of Agha Steel Industries Limited ('ASIL' or 'the Company') to 'CCC/C' ('Triple C'/'C') from 'BB-/B-3' ('Double B minus'/'B-Three'). Medium to long term rating of 'CCC' indicates Considerable uncertainty towards meeting the obligations. Protection factors are scarce and risk may be substantial. Overall quality may move up or down frequently within this category. Short term rating of 'C' denotes that the capacity for timely payment of obligations is doubtful. Outlook on the assigned ratings remains 'Negative'. Previous Rating action was announced on April 01, 2024.

Agha Steel Industries Limited was established in Pakistan on November 19, 2013, as a private limited company. On April 07, 2015, ASIL transitioned to a public limited company. The Company was listed on the Pakistan Stock Exchange through an IPO in November 2020. The central operation of ASIL’s business is focused on the production and sale of steel bars, wire rods, and billets. The Company's registered office and manufacturing facilities are located at Port Qasim Authority, Karachi.

Ratings downgrade stems from the Company’s non-payment on its profit payment for its Sukuk 3 instrument. However, revised ratings consider the ongoing restructuring process with the Company’s major bank lenders as well as its standing in the industry. Going forward, ratings will consider the successful conclusion of the restructuring process.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.




Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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