Press Release

JCR-VIS Assigns Initial Ratings of A-/A-2 to Ali Gohar & Company (Private) Limited

Karachi, January 21, 2014: JCR-VIS Credit Rating Company Ltd. has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Ali Gohar & Company (Private) Limited (AG&C). Outlook on the assigned rating is ‘Stable’.

Distribution industry in Pakistan is highly fragmented with significant number of regional players. In recent times, increasing trend towards consolidation has been witnessed with large players in the fast moving consumer goods and pharmaceutical industry moving towards national distribution arrangements. AG&C benefits from its positioning as one of the leading national level distributor in the country, providing coverage across Pakistan through 20 distribution centers. Apart from pharmaceuticals, which is the company’s primary business segment, the company is also involved in distribution of beauty products and select fast moving consumer goods. AG&C also provides proxy marketing services to some of its Principals.

The assigned ratings incorporate low business risk and sound financial risk profile of AG&C. Ratings also reflect company’s status as one of the leading national distributor in the country, stable positive cash flows, experienced & professional management team and favorable working capital cycle which results in limited external funding requirements. Moreover, the company also benefits from its experience in specialized segments. Net equity of the company has increased over time on account of profit retention. Liquidity profile of the company is considered sound. There are no plans to acquire debt and capital expenditure is proposed to be funded through internal sources, as in the past. AG&C has an established distribution network, supported by technology, allowing the company to actively monitor operations.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311873.

Jamal Abbas Zaidi
Deputy CEO

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2014 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited