Aisha Steel Mills Limited (ASL) has had its entity ratings reaffirmed at ‘BBB+/A2’ by VIS Credit Rating Company Limited, with a stable outlook.
The ratings reflect the company’s established position in Pakistan’s flat steel sector and its association with the Arif Habib Group, a leading industrial and financial conglomerate in Pakistan, providing strong sponsor support, experienced management and a diversified customer base across automotive, engineering and appliance sectors, VIS said.
ASL’s business risk profile remains exposed to imported HRC dependency, international price volatility and competition from low-priced imports, while demand is closely linked to broader economic conditions. However, recent regulatory measures and improving macro indicators have supported a recovery in volumes and export contribution.
Profitability, which weakened previously due to pricing pressures and subdued demand, has improved in the current period, supported by higher volumes, better margins and lower finance costs.
The company’s financial risk profile has strengthened, driven by debt reduction and equity support from sponsors, leading to improved leverage, liquidity and debt servicing capacity, the credit agency said.
Aisha Steel started its commercial operation in 2012 and is one of the largest manufacturers of flat rolled steel located in Port Qasim, Karachi. The company’s annual capacity of cold rolled steel is 700,000 tons and galvanized steel is 250,000 tons.
