Press Release

VIS assigns initial ratings to Radiant Medical (Pvt.) Limited

Karachi, March 16, 2020: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘BBB+/A-2’ (Triple B Plus/A-Two) to Radiant Medical (Pvt.) Limited (RML). The medium to long-term rating of ‘BBB+’ denotes adequate credit quality with reasonable and sufficient protection factors. Moreover, risk factors are considered variable with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and fundamental protection factors. Outlook on the assigned rating is ‘Stable’.

RML is medium-size trading enterprise, involved in business of import and supply of medical equipment. The firm is majority owned and managed by family members. The ratings take into account steady growth in sales emanating from securing contracts from government, semi-government and premium healthcare institutes in Pakistan and specialized nature of equipment solely distributed by the company. Ratings draw comfort from good margins, strong liquidity profile with low leveraged capital structure and maintenance of these financial indicators over the rating horizon. Coverages remained sizeable given improvement in cash flows and minimal on-balance sheet financing. However, the ratings are constrained by implied volatility in the topline due to nature of business and relatively small scale of operations amid rating universe. The ratings also factor in presence of the company in highly fragmented industry, possible impact of currency fluctuation on products’ prices and any adverse changes in regulatory duties. Further, corporate governance framework has considerable room for improvement.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at

Javed Callea

Applicable rating criterion: Corporates (May 2019)

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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