Press Release

VIS Reaffirms Entity and Sukuk Ratings of Aspin Pharma (Private) Limited

Karachi, October 06, 2021: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the entity ratings of Aspin Pharma (Private) Limited (APL) at ‘A/A-2’ (Single A/A-Two). Rating of APL’s secured Sukuk issue of Rs. 1,500m has also been reaffirmed at ‘A’ (Single A). Long term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-2’ depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 19, 2020.

Assigned ratings capture APL’s sound sponsor profile, track record of growth and profitable operations and well-established brand value of its leading products. Reaffirmation of ratings takes into account the healthy cash flows generation translating into adequate liquidity and debt coverage metrics which are expected to further improve over time. Concentration in product portfolio (top five brands accounting for three-fifth of total revenue), limited therapeutic area coverage and relatively small market share of the company continues to remain the rating constraints. However, the business strategy is aligned to focus towards continuous expansion of product range and therapeutic areas.

Business risk profile is supported by growing demand, favourable population demographics, increasing incidence of diseases and non-cyclical nature of the sector with relatively inelastic demand. Nevertheless, regulatory risk including changes in pricing policies and sharp rupee devaluation (given 95% of basic raw material API is imported) remain key challenges for the industry.

For further information on this rating announcement, please contact the undersigned (Ext. 306) or Mr. Muhammad Tabish (Ext: 203) at 021-35311861-70 or email at .

Faryal Ahmad Faheem
Deputy CEO

Applicable 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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