Press Release

VIS Upgrades Short-Term Rating of Associated Technologies (Pvt.) Limited

Karachi, February 27, 2019: VIS Credit Rating Company Limited (VIS) has upgraded short-term entity rating of Associated Technologies (Pvt.) Limited from ‘A-2’ (A-Two) to ‘A-1’ (A-One) while maintaining the medium to long-term rating at ‘A-’ (A Minus). The medium to long-term rating of ‘A-’ denotes good credit quality, with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on February 14, 2018.

The ratings assigned to ATL take into account its low leveraged capital structure, sound liquidity position and strong coverages. The ratings are constrained by relatively higher risk inherent in competitive bidding contracts business. While considerable proportion of assets are tied-up in investment property, volatility in Real Estate may impact profitability and equity of the company.

During FY18, the company recorded decline in revenue on account of lower sales related to civil contracts. While the gross and operating margins have remained sound, the same have declined in FY18 due to increase in sales of lower margin supply of goods along with decrease in revenues generated from higher margin civil contracts. Given contracts in hand, the company is projecting higher revenue for FY19. The ratings are dependent on growth in revenue stream and maintenance of low leveraged capital structure.

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

Jamal Abbas Zaidi

Applicable rating criterion: Industrial Corporate (May, 2016)

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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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