Mughal Iron & Steel Industries Limited (Mughal Steel) has retained its long-term ‘A+’ and short-term ‘A1’ entity ratings, with a stable outlook, according to VIS Credit Rating Company.
VIS cited Mughal Steel’s strong liquidity, sound credit quality and consistent operating performance, alongside adequate protection factors and a strong ability to meet short-term obligations. The previous rating review was conducted in November 2024.
The ratings reflect the company’s established position in Pakistan’s steel sector, supported by a diversified ferrous and non-ferrous product portfolio, integrated operations and long-standing domestic and export market relationships. VIS also noted ongoing investments in captive and sustainable energy, which are expected to help reduce power costs and support margins over the medium term.
While Mughal Steel faces business risks from demand cyclicality, competition and raw material price volatility, VIS said its market position, adequate liquidity, improving coverage indicators and a gradually strengthening capital structure underpin the current ratings.
With an annual production capacity of 1 mln tons, Mughal Steel manufactures billets, rebar, and structural sections, and also produces copper ingots, mainly for export to China. Its sole investment is in Mughal Energy Limited, which is nearing completion of a 36.5 MW hybrid captive power plant to supply electricity to the company’s operations.
