Press Release

VIS Reaffirms Entity Ratings of Shirazi Investments (Private) Limited

Karachi, February 03, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Shirazi Investments (Private) Limited (SIL) at ‘AA/A-1’ (Double A/A-One). The medium to long-term rating of ‘AA’ signifies high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings is ‘Stable’. Previous rating was announced on January 11, 2022.

Shirazi Investments (Private) Limited (SIL) is the holding company for the ‘Atlas Group of Companies’, which is one of the top ten business groups in Pakistan and has a long established history of nearly six decades with a cumulative annual turnover of approximately Rs. 347b reported in FY22. SIL’s business risk profile is supported by a diversified portfolio of investments in various sectors including manufacturing, power generation, trading and financial services. Shareholding of SIL is vested among members of the Shirazi Family.

The Company’s long-term strategic investment portfolio represented around 70% of total asset base at end-June’22 majorly comprising exposure in group companies. Around four-fifth of the portfolio is represented by 2 subsidiaries (Atlas Power Limited and Atlas Honda Limited) and 1 associate company (Honda Atlas Cars). The cyclical nature of the automotive sector retains considerable weight on the ratings assessment as nearly one-half of the dividend income is generated from this sector. In relation to the same, rating captures significant demand slowdown in the automobile industry in view of the weak economic fundamentals of the country, high benchmark rates, political uncertainty, inflationary pressures, floods in the country and the restrictions on quantity of imports of CKD kits imposed by State Bank of Pakistan to conserve the foreign reserves of the country. SIL is also actively involved in trading of investments in listed equity securities & mutual funds and maintained a short-term investment portfolio of Rs. 11.2b as at end-FY22.

Assessment of financial risk profile incorporates lower net earnings of the Company in the outgoing year due to unrealized loss on revaluation of investments because of subdued equity market and higher provisions for impairment losses. Although management projects some slowdown in dividend income in the ongoing year due to depressed macroeconomic environment (particularly automotive sector), the same is expected to gradually increase over the rating horizon on account of envisaged future business plans together with rental income from real estate and warehousing segment. Meeting projected targets will be important from a ratings perspective. On the capitalization front, although equity base reduced due to unrealized loss on revaluation of investments; debt profile is well-managed with low leverage levels. The assigned ratings are underpinned by the strong capitalization and earing profile of SIL and its continuation and strengthening going forward.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext. 306) at 021-35311861-70 or email at

Faryal Ahmed Faheem
Deputy CEO

VIS Entity Rating Criteria: Industrial Corporates (August 2021)

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