Press Release

VIS Upgrades Short-Term Entity Rating of Shirazi Investments (Private) Limited

Karachi, January 24, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the short-term entity ratings of Shirazi Investments (Private) Limited (‘SIL’ or the ‘Company’) to ‘A-1+' (A-One Plus) from ‘A-1’ (A-One) while medium to long-term rating has been maintained at ‘AA’ (Double A). Medium to long term rating of 'AA' indicates 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+' indicates Highest certainty of timely payment; Short-term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding and safety is just below risk free Government of Pakistan’s short-term obligations. Outlook on the assigned ratings remains Stable. Previous Rating action was announced on February 03, 2023

Incorporated in 1962, SIL is a holding company with a diversified business profile and investments in various sectors, referred as ‘The Atlas Group’, which includes automotive, power generation, trading and financial services. The Group stands amongst one of the top ten business groups in Pakistan and has a long established history of over six decades. The shareholding of the Company is vested among members of the Shirazi Family. The Company, with its headquarters in Karachi, operates three regional offices located in Lahore, Multan, and Islamabad.

The Company’s investment portfolio, which form the bulk of its asset base, comprised a mix of long-term and short-term investments. Long-term portfolio consist of investments in 15 companies, including 12 subsidiaries and 3 associates, with a significant concentration in Atlas Honda Limited, Atlas Power Limited, and Honda Atlas Cars Pakistan Limited. At the same time, SIL is actively engaged in trading and investment, maintaining a short-term investment portfolio, with a notable part of these investments in listed equities and mutual funds. SIL’s net earnings saw a positive uptick in FY23, primarily attributable to higher dividend income, a decrease in unrealized losses and reversal of impairment losses on investment portfolio. However, the ratings take into account the cyclical nature of the automotive industry, which accounts for almost half of the Company's dividend income.

The capitalization profile of the Company remains underpinned by its conservative financing strategy with minimal reliance on bank borrowings while maintaining sound cash flows. The short-term rating upgrade is supported by consistently maintaining a high current ratio and sizable liquid assets in relation to outstanding liabilities. The Company's ratings will remain dependent upon its ability to maintain robust capitalization and liquidity levels.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-64 (Ext. 201) or email at

Javed Callea

Applicable Rating Criteria: Industrial Corporates
VIS Rating scale

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