Press Release

VIS Assigns Initial Ratings to Associated Technologies (Pvt.) Limited

Karachi, June 3, 2022: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Associated Technologies (Pvt.) Limited (ATL). 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.

ATL is a family-owned business with main sponsor involved in day-to-day operations of the company. Principal activities of the company include manufacturing, fabrication of steel towers and construction of civil works. Since its inception, ATL has manufactured and supplied electricity transmission and telecommunication towers and developed infrastructure in the sectors of energy, hydropower and telecommunication. The company’s operations are divided into three segments, namely Fabricated Steel Products, Construction Contracts, and Site Services.

The ratings assigned to ATL incorporates low leveraged capital structure and sound coverages, translating into its low financial risk profile. As revenue remains a function of projects awarded to the company, an outcome of competitive bidding, business risk is thereby considered moderately high. Net revenue of the company increased during FY21 mainly on account of growth in Fabricated Steel Products and Site Services segments. ATL’s gross margin improved considerably during FY21 on the back of notable increase in gross margin of Construction Contracts segment. Going forward, variation in cash flows is expected to remain a function of sales and gross margin.

The company has recently established a special purpose vehicle (SPV) with the name of Tower Power (Pvt.) Limited (TPL), a wholly-owned subsidiary of ATL, which will be responsible for ownership, operations, and maintenance of company-owned tower portfolio. The company plans to transfer all the assets of Site Services (B2S segments) to TPL upon completion of regulatory approvals. Meanwhile, ATL will remain involved in site construction, tower installation, and power arrangements. Therefore, the ratings are being placed on Rating Watch Developing Status. Ratings will be reviewed subsequent to the completion of the demerger process. Meanwhile, ratings would remain sensitive to maintenance of liquidity and capitalization indicators at comfortable levels and any further deterioration in these factors would have an impact on ratings. In addition, achieving projected revenue growth and maintaining profit margins amidst rising cost of sales and operating costs would remain imperative.

For further information on this rating announcement, please contact Mr. Maimoon Rasheed at 042-35723411-13 (Ext. 8008) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

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 .

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