Press Release

VIS Reaffirms Entity Ratings of Muller & Phipps Pakistan Private Limited

Karachi, January 15, 2021: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Muller & Phipps Pakistan Private Limited (M&P) at ‘A+/A-1’ (Single A plus /A-One). Outlook on the assigned ratings is stable. Previous rating action was announced on December 31, 2019.

Reaffirmation of ratings continues to draw comfort from M&P’s leading market position, established and diversified principal base (segmented into four business divisions), extensive outreach with nation-wide distributional coverage and healthy growth in topline over the years. M&P’s business risk profile is supported by long-term relations with top-tier clients, diversified principal base and segments catered with healthy demand outlook going forward. These positive factors are impacted by fragmented and competitive nature of distribution industry resulting in low margins for industry players. Liquidity and capitalization indicators are considered sound. Ratings also take note of M&P’s adequate business and financial risk profile along with sound corporate governance infrastructure which is supported by a well-designed organizational structure and adequate IT platform. Ratings also draw comfort from sound cash flow profile, healthy debt servicing, and improving leverage indicators.

Assessment of financial profile incorporates strong double digit growth in revenues while the momentum is expected to continue over the rating horizon on the back of organic growth from existing principals and new principal additions. Over the years, the company has managed to improve its working capital cycle (primarily in telecom segment) through continuous negotiation of better credit terms with existing customers. Given resultant reduction in short-term borrowings along with higher equity base, leverage indicators have depicted improvement on a timeline basis. Ratings are dependent upon sustenance and improvement in margins, cashflows and capitalization indicators.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmed Faheem
Deputy CEO

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

VIS Credit Rating Company Limited