Press Release

VIS Reaffirms Entity Ratings of Fast Cables Limited

Karachi, November 16, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Fast Cables Limited (FCL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ signifies good credit quality with strong protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Access to capital is good. Risk factors are smallOutlook on the assigned ratings is ‘Stable’. The previous rating action was announced on November 30, 2021.
The assigned rating reflects FCL’s recognized franchise value and market position in the electrical cable industry. Business risk profile is characterized by weak macro-economic conditions, unprecedented surge in global commodity prices and political turmoil. FCL is also exposed to sizeable competition from Chinese imports coupled with competition from unorganized segment. However, overall business risk profile is supported by stable medium term demand, which is expected to dampen in the long run. Albeit, inherent business risk pertaining to volatility in raw material prices and rupee depreciation is prevalent, the same remains critical for the rating
Rating incorporates notable growth in sales emanating from higher commodity prices. Volumes also grew mostly in the commercial and industrial segment, albeit lower than last year volume growth. Higher prices and improved product mix resulted in margin improvement in FY22. The ratings incorporate ongoing capex for backward integration and value addition in manufacturing operations and resulting projected improvement in topline and margins owing to cost-efficiencies post capex completion. The ratings also factor in financial risk profile of FCL characterized by adequate liquidity, improved margins and strong equity base. However, on account of higher working capital requirements, gearing levels stand elevated. Going forward, achievement of projected plans and deleveraging of balance sheet will remain important for ratings.
For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext. 207) at 021-35311861-70 or email at

Sara Ahmed

Applicable rating criterion: 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 .