Press Release

VIS Reaffirms Entity Ratings of Popular International Private Limited

Karachi, December 8, 2023: VIS Credit Rating Company Ltd. has reaffirmed 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’. Previous rating action was announced on November 03, 2022.

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 seven main segments: Surgical, Biological, Diagnostic, Orthopedic, Diabetic, Hospitals, and Dialysis, with the surgical segment being the flagship business.

Assigned ratings factor in PIPL’s strong market position in life-saving equipment and disposables market and long-term relationships with major principals, including Medtronic, Raas, Acon, and Grifols. 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 leading market position of the Company in sales of sugar strips and surgical disposables. Nationwide presence enables better outreach. The corporate governance framework is considered adequate with room for improvement in external reporting framework.

Ratings incorporate conservative financial policy of the Company as reflected by low leverage capital structure and strong liquidity profile. Assessment of financial risk profile reflects steady topline growth supported by healthy gross profit margins despite the volatility in exchange rates during the year. Operating expenses were also contained, improving operating margins however; elevated finance costs due to higher interest rates, contained reduced the net margin improvement. Going forward, maintenance of margins will remain important for ratings. Capitalization indicators are reflective of adequate equity base, 100% profit retention, and comfortable leverage and gearing levels. Improvement in profitability profile coupled with profit retention remains important for augmentation of equity base.

For further information on this ratings announcement, please contact Ms. Gul Aina Sohail and/or the undersigned at 021-35311861-64 (Ext: 207) or email at

Sara Ahmed

VIS Entity Rating Criteria Methodology – Industrial Corporates (May 2023)

VIS Issue/Issuer Rating Scale:

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .