Press Release

JCR-VIS assigns initial entity ratings to Associated Technologies (Private) Limited

Karachi, February 14, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Associated Technologies (Private) Limited (ATL). Outlook on the assigned ratings is ‘Stable’.

The ratings assigned to ATL incorporates low leverage and adequate coverages thereby translating into low financial risk profile of the company. As revenue remains a function of projects awarded to the company, an outcome of competitive bidding, business risk is thereby considered moderately high.

ATL is a family owned business with 100% shareholding vested with Mr. Mobashir A. Malik & family. Principal activities of the company include manufacturing, fabrication of steel towers and construction of civil works. Since its inception, ATL has manufactured and supplied telecommunication towers and developed infrastructure in the sectors of energy, hydropower and telecommunication along with installation of over 14000 Base Transceiver Station (BTS) sites for all the telecommunication operators in Pakistan.

During FY17, net revenue increased primarily as a result of higher civil contracts obtained. Given relatively higher margin in civil contracts business, gross margin of the company stood higher during FY17. Liquidity is considered sound on account of ample cash balance available. Moreover, credit terms of steel supplies are mostly cash on delivery. Cash flows improved while coverages have remained sound. Going forward, variation in cash flows is expected to remain a function of sales and gross margin.

By end-FY17, total equity of the company continues to increase on account of profit retention. Debt profile of ATL is considered conservative as evident by its low leverage indicators.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Javed Callea

Applicable Rating Criterion: Industrial Corporate (May 2016)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2018 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited