Aspin Pharma’s Short-Term Sukuk Receives ‘A1’ Rating from VIS

Karachi: VIS Credit Rating Company Limited has finalized the short-term rating of ‘A1’ for Aspin Pharma (Private) Limited’s Short-Term Sukuk issue, amounting to Rs. 2,000 million. This rating indicates a strong likelihood of timely repayment of short-term obligations, supported by excellent liquidity factors. The company’s entity ratings stand at ‘A/A1’ with a stable outlook. The previous rating action was announced on December 31, 2024.

According to a statement by VIS Credit Rating Company Limited, Aspin Pharma has issued a privately placed, unlisted, and unsecured Short-Term Sukuk based on Musharakah, with a six-month tenor starting from January 6, 2025. The profit rate on the instrument is set at 6 Month KIBOR+0.80%, with the principal and profit payments due on July 7, 2025.

The rating reflects the low business risk profile of Pakistan’s pharmaceutical sector, driven by stable demand and low economic sensitivity. Factors such as population growth, disease prevalence, and health awareness contribute to sustained demand for pharmaceuticals. The recent deregulation of drug prices for non-essential medicines allows companies to adjust prices independently, enhancing the sector’s risk profile.

Financial assessments reveal increasing revenue in the third quarter, aided by price adjustments, leading to improved profitability and margins. Liquidity metrics have also shown improvement, with better cashflow coverages and a stable current ratio. An expanded equity base and the repayment of long-term obligations have reduced leverage, strengthening the capital structure. Maintaining liquidity and capitalization metrics is crucial for sustaining ratings.

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