Press Release

VIS Assigns Initial Entity Ratings to Popular International (Private) Limited

Karachi, November 03, 2022: VIS Credit Rating Company Ltd. has assigned initial entity ratings of ‘A/A-1’ (Single A/A-One) to Popular International (Private) Limited (PIPL). Medium to long-term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk factors are considered variable if changes occur in the economy. Short term rating of ‘A-1’ denotes high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors; risk factors are minor. Outlook on the assigned ratings is ‘Stable’.

PIPL is principally engaged in the import, warehousing, marketing, and distribution of surgical equipment and supplies, pharmaceuticals, and diagnostic and healthcare products. The Company is organized into four main segments: Surgical, Biological, Diabetic care, and Diagnostic, with the surgical segment being the flagship business.

Assigned ratings take into account PIPL’s dominant position in the life-saving equipment and disposables market with strong and long-standing relationships with key principals namely Medtronic, a global healthcare technology leader, and Grifols, Raas, and Acon. Exclusive partnerships with key partners allow them to position themselves as key market player. Ratings also take into account the diversified revenue stream from several segments of the industry, which together with steady demand supports the business risk profile. Ratings further factor in adequate distribution infrastructure and controls as well as sound financial profile as reflected by low leveraged capital structure, conservative financial policy, and strong liquidity profile. Overall, the corporate governance framework remains adequate with room for improvement in the external control framework.

Assessment of financial profile reflects steady topline growth over the years supported by strong gross margins relative to peers. Rising freight costs, currency devaluation and enhanced focus on new product additions has affected gross margins on a timeline basis; however, improved operational efficiencies resulted in higher net margins. Going forward, management envisages profitability levels to depict improvement given planned organic growth. Liquidity profile is considered sound with strong cash flow coverages. Capitalization indicators are reflective of conservative financial policy with low leverage, relative to industry. Ratings remain dependent upon maintenance of profitability profile with low gearing and leverage metrics, growth in equity base, underpinned by profit retention and dominant position of the company in its market segment.

For further information on this rating announcement, please contact Mr. Muhammad Tabish or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Sara Ahmed

VIS Entity Rating Criteria: Industrial 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 .

VIS Credit Rating Company Limited