Press Release

VIS Reaffirms Ratings of Olympia Oils (Pvt.) Limited

Karachi, October 11, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Olympia Oils (Pvt.) Limited (OOL) 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. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on November 11, 2021.

OOL is primarily engaged in the production and sales of edible oil and oil meal using solvent extraction process. OOL is the flagship company of “Monnoo Group” with diversified business interests in textile, poultry, carpets, chemicals & synthetics. The ratings draw strength from moderate business risk profile based on majority of the revenue emanating from bulk sales to institutional clients thereby avoiding competition from mainstream branded oil market.

The sales increased during the outgoing year on account of higher product prices despite decrease in sales volume. The company also posted relatively higher margins on a timeline basis. Leverage indicators improved considerably due to lower short-term borrowings and enhanced equity base. Liquidity profile is underpinned by adequate cash flow coverages and manageable working capital cycle. The demand outlook for consumer goods industry including edible oil, though quite inelastic, may be somewhat impacted due to recent floods in the country affecting ~33 million people. The ratings will remain dependent on maintaining profitability profile, liquidity and capitalization indicators, going forward.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8005) 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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