Press Release

VIS Maintains Ratings of International Industries Limited
 

Karachi, March 12, 2021: VIS Credit Rating Company Limited has maintained the entity ratings of ‘AA-/A-1’ (Double A Minus/A-One) assigned to International Industries Limited (IIL). The medium to long-term rating of ‘AA-’ denotes high credit quality coupled with strong protection factors. Moreover, risk factors may vary slightly with possible changes in the economy. The short-term rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Previous rating action was announced on October 20, 2020.

IIL was placed on a ‘Rating Watch - Negative’ in October 2020 on account of the cash flow coverage indicators sliding below the threshold for the assigned rating. However, the increased steel demand, witnessed in H1’FY21, has translated in significant improvement in turnover and profitability, while finance cost has also reduced on the back of lower prevailing benchmark rates. As a result, cash flow coverage indicators have depicted improvement. In view of the same, the outlook has been revised to ‘Stable’.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or Mr. Arsal Ayub, CFA (Ext: 215) at 021-35311861-71 or fax to 021-35311872-3.



Faryal Ahmed Faheem
Deputy CEO

Applicable Rating Criteria: Industrial Corporates (May 2019)
https://www.vis.com.pk/kc-meth.aspx

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