KARACHI:VIS Credit Rating Company Limited has assigned initial entity ratings of triple B plus /A-Two) to Ana & Batla Industries (Private) Limited . The medium to long-term rating of ‘BBB+’ signifies adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy.
The short-term rating of ‘A-2’ signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factorsare small. Outlook on the assigned rating is stable, said release on Monday.
Incorporated in 2016, ABI is engaged in the manufacture and sale of personal hygiene products, including diapers for babies and adults, sanitary napkins, and wipes.
The company’s production facilities are located in Karachi, with about 98% of its sales being concentrated in the local market comprising baby diapers. Business risk profile is considered moderate given growing demand dynamics of baby diapers (major segment in which the company operates) in view of large population base and high annual birth rate as compared to regional countries. Imposition of significant duty by the Government on the import of manufactured diapers has provided competitive advantage to the local manufacturers.
Assessment of financial risk profile highlights a stable growth in revenues over the years due to improving demand dynamics and shift in consumption towards locally manufactured personal care products due to price competitiveness.