VIS upgrades short-term rating of Associated Technologies

KARACHI: VIS Credit Rating Company Limited has upgraded short-term entity rating of Associated Technologies (Pvt.) Limited from A-Two to A-One while maintaining the medium to long-term rating at 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, said a press release on Thursday.

The 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.