Press Release

VIS Maintains Ratings of FM Express with ‘Rating Watch - Negative’ Status

Karachi, May 19, 2020: VIS Credit Rating Company Limited (VIS), while maintaining entity ratings of ‘BBB/A-3’ (Triple B/A-Three) assigned to FM Express (FME), has placed the same on ‘Rating Watch - Negative’ status. The medium to long-term rating of ‘BBB’ denotes adequate credit quality coupled with reasonable & sufficient protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-3’ denotes timely payment of obligations coupled with satisfactory liquidity and other protection factors. The previous rating action was announced on August 28, 2019.

FME is primarily engaged in the business of transportation services with a fleet of more than 350 buses/vans and 25 bus terminals in major cities of Pakistan. The firm utilizes long-term lease financing facility and equity to purchase new vehicles, while lease facility is normally repaid in three years.

The revision in rating outlook reflects prevailing uncertainty in transportation sector due to closure of all motorways and public transport in view of coronavirus outbreak and following lockdown. Status of the assigned rating is therefore uncertain as an event of deviation from expected trend has occurred; additional information will be necessary to take any further rating action, warranting a ‘Rating Watch’ status. As the FME is entirely dependent on intra-city transportation for revenue generation, ratings are being placed on ‘Negative’ outlook. Nevertheless as scenario is evolving rapidly, VIS will closely monitor and will accordingly take action to resolve the outlook status.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at 021-35311861-70 (306) or

Faryal Faheem Ahmed
Deputy CEO

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 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 .

VIS Credit Rating Company Limited