Press Release

VIS Assigns Entity Ratings to Vision Builders (Private) Limited

Karachi, January 10, 2020: VIS Credit Rating Company Limited has assigned initial entity ratings of ‘BBB/A-2’ (Triple B/A-Two) to Vision Builders (Private) Limited (VBPL). Long term entity rating of ‘BBB’ reflects adequate credit quality, reasonable and sufficient protection factors. Risk factors are considered variable if changes occur in the economy. Short Term Rating of ‘A-2’ indicates good certainty of timely payment, sound liquidity factors and company fundamentals. Access to capital markets is good. Outlook on the assigned ratings is ‘Stable’.

VBPL is a part of Vision Group of Companies that deals in real estate projects in Pakistan and is owned largely by Mr. Aleem Khan, a prominent businessman and politician. The company provides land development, construction and supervisory services to Vision Developers Private Limited’s (VDPL) project- Park View Villas, Lahore. Given VBDL’s high reliance on progress of Park View Villas project, business risk profile is considered high on the back of sizeable client/related party concentration risk. However, business risk profile draws comfort from steady pace of work on the project which has resulted in consistent revenues over the last 3 years. Furthermore, a sizeable portion of development work on Park View Villas is planned over the next few years which is expected to translate into healthy growth in revenues over the rating horizon.

Assessment of financial risk profile incorporates improving profitability and adequate liquidity & capitalization indicators. Liquidity profile of the company is considered adequate in view of sufficient cash flows to service outstanding debt obligations. Given no further projected debt drawdown, limited capex requirement, and projected enhancement in profitability, debt servicing cushion is projected to increase over the rating horizon. Ratings remain dependent on continuity of sponsor support, maintenance of sufficient debt servicing cushion and leverage indicators while undertaking planned improvements in corporate governance framework.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext. 201) at 021-35311861-70 or email at info@vis.com.pk .



Javed Callea
Advisor

Applicable Rating Criteria:
Industrial Corporates - April 2019
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Corporate-Methodology-201904.pdf
Real Estate Developers - August 2017
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/RealEstate%20Methodology%20201708.pdf

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .