Press Release

VIS Reaffirms Entity Ratings of K.S.F Trizone Industries (Pvt.) Limited

Karachi, June 12, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of K.S.F Trizone Industries (Pvt.) Ltd. (KSF) at ‘BBB+/A-2’ (Triple B plus/A-Two) with ‘Stable’ outlook. The medium to long-term rating of ‘BBB+’ denotes adequate credit quality with reasonable and sufficient protection factors. Moreover, risk factors are considered variable if changes occur in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment with sound liquidity and company fundamentals. Access to capital markets is good and risk factors are low. Previous rating action was announced on March 30, 2022.

KSF is a family-owned entity and is the leading company in the K.S.F Group that largely has exposure in the packaging sector. It is primarily engaged in the manufacture of polypropylene woven bags, polyethylene bags (liner bags), tarpaulin, green and yellow net cloth, and EVA plastic compound. Overall business risk has been elevated in the outgoing year owing to macroeconomic deterioration mainly in the form of import restrictions, rising interest rates and high inflationary environment. However, demand outlook is expected to be relatively stable, particularly of the main revenue driver, polypropylene woven bags, as it stems largely from agricultural, sugar and poultry industries.

Assessment of financial risk profile takes into account stable net margins, adequate liquidity profile and manageable capitalization levels. Sizeable growth in topline during FY22 was largely provided by higher average selling prices. Despite exchange losses and elevated financing costs, net margins remained stable due to increase in gross margins attributable to inventory gains. Although leverage ratios of the company increased in the review period due to higher working capital requirements, the same remain within manageable levels for the assigned ratings. Going forward, the ratings will remain sensitive to the Company’s ability to enhance its profitability performance and sustain liquidity and capitalization indicators that commensurate with the benchmarks for the assigned ratings.
For further information on this rating announcement, please contact Ms. Asfia Amanullah and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

VIS Entity Rating Criteria: Corporates (May 2023)

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