Press Release

VIS upgrades entity rating of Digital World Pakistan (Pvt.) Limited

Karachi, June 30, 2021: VIS Credit Rating Company Limited (VIS) has upgraded the entity rating of Digital World Pakistan (Pvt.) Limited (DWPL) from ‘BBB+/A-2’ (Triple B Plus/A-Two) to ‘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 payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on July 13, 2020.

The assigned ratings of DWPL take into account sponsors’ industry experience, particularly in the end-to-end supply chain management, strong brand recognition and loyalty among customers in the consumer durable industry and long-standing business relations with vendors and dealers. The ratings draw comfort from largely sustained topline and profitability during the outgoing year despite supply and demand disruptions due to pandemic. Revision in rating takes into account healthy sales growth in the ongoing year with increase manifested in all major products led by higher volumetric sales and average selling prices. Leverage indicators have improved in line with higher equity base. Debt service coverage, albeit decreased, has remained adequate. Cognizant of high competition, the company has launched EcoStar-branded air-conditioners to tap lower segment of the market in FY20. Given significant dependence on distribution rights of Gree-branded products, ratings will remain sensitive to the maintenance of strategic relations with Gree Electric Appliances Inc. The ratings would also remain sensitive to dynamic consumer preferences for electronics goods, high price sensitivity and vulnerability to foreign exchange risk amidst low pricing power. Sustained growth in revenues while containing leverage indicators would remain key rating drivers, going forward.

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

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