Press Release

VIS Maintains Entity Ratings of DSV Solutions (Private) Limited (Formerly Known as Agility Logistics (Pvt.) Limited)

Karachi, December 16, 2022: VIS Credit Rating Company Limited (VIS) has maintained entity ratings of DSV Solutions (Private) Limited (Formerly known as Agility Logistics (Pvt.) Limited) at ‘A/A-2’ (Single A/A- Two). The medium to long-term rating of ‘A’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely repayment, sound liquidity factors and good company’s fundamentals. Outlook on the assigned ratings has been revised from ‘Rating Watch-Developing’ to ‘Stable’ status on account of successful transfer of a business segment as planned. Previous rating action was announced on November 18, 2021.

DSV Solutions (Pvt.) Limited (Formerly known as Agility Logistics (Pvt.) Limited) (DSPL) (after acquisition of Agility Global Integrated Operations, Kuwait by DSV A/S) is a wholly-owned subsidiary of DSV (Asia/Pacific) Limited with ultimate parent company being DSV A/S (DSV). DSV is a Denmark based Global Transport and Logistics company (listed on NASDAQ) which has its presence in Pakistan in the Air & Sea segment. DSV has outstanding corporate rating of A3 and A- from Moody’s and S&P on the international scale. As per the acquisition arrangement, air and sea business segment (freight forwarding and custom clearance) was transferred to DSV Air & Sea (SMC) Private Limited on April 01, 2022. DSV after integration of Agility GIL becomes the third largest global freight handler at the international level. Post transfer of the business segment, the rated company operates in the Solutions segment offering the following services- Warehousing, Fleet management (road) and Distribution (goods) services.

Ratings factor in strong sponsor profile and moderate business risk profile given revenues majorly emanating from industries (FMCGs) having relatively inelastic demand. Assessment of financial risk incorporates reduction in quantum of topline in comparison to preceding year due to transfer of highest revenue contributing segment, improving margins post transfer of low margin yielding segment, elevated working capital cycle impacting liquidity profile and low leveraged capital structure. Going forward, revenue growth is expected to emanate from the fleet management segment followed by organic growth in distribution segment and warehousing segments. Post weakening in 2021, profitability indicators witnessed improvement in the ongoing year by booking of exchange gain. With elevated benchmark rates and consequent higher finance costs paid, cash flow coverages against outstanding obligations reduced in the ongoing year. Projected improvement in liquidity profile is considered important to sustain the ratings at current levels. Capitalization profile reflects a conservative financial policy with debt portfolio comprising only short-term borrowings and consistent profit retention. Given no plans of additional long-term debt drawdown and plans to retain profits, leverage indicators are expected to improve going forward. Ratings are underpinned on meeting projected profitability and liquidity indicators.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 207) at 021-35311861-71 or email at

Sara Ahmed

VIS Entity Rating Criteria Methodology – Industrial Corporates (August 2021)

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