Press Release

VIS Reaffirms Ratings of Bunny’s Limited

Karachi, December 30, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Bunny’s Limited (BL) at ‘A-/A-2’ (Single A Minus/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 payment coupled with sound company fundamentals and liquidity factors. The previous rating action was announced on December 05, 2019.

The ratings assigned to BL take into account the company’s moderate business risk profile owing to its presence in fast moving consumer goods market and largely established brand name. Ratings are underpinned by the modest market coverage and the strong competition in their product line. Liquidity has remained largely intact and is considered adequate as reflected by cash flows in relation to outstanding obligations. Leverage indicators also remained comfortable despite some increase in borrowings. Meanwhile, the ratings remained constrained on account of modest growth in revenues due to limited capacity and distribution network. However, the ongoing capacity enhancement entailing installation of bun line would free some existing capacity for other products. Going forward, the ratings will remain dependent on maintenance of liquidity and capitalization indicators at adequate levels.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 306) or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable rating criterion: Corporates (May 2019)

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 .

VIS Credit Rating Company Limited