Karachi, In a significant financial update, VIS Credit Rating Company Limited has elevated the credit ratings of Mehboob Steel Pipe Industry (MSPI) from 'BBB-/A-2' to 'BBB/A-2', reflecting an improved financial profile despite prevailing economic difficulties. The upgrade signifies a shift to a more stable outlook for the company's future financial health.

According to VIS Credit Rating Company Limited, the upgrade reflects MSPI's strengthened financial risk profile and improved profitability, despite the economic slowdown. Established in 2004, MSPI has been a significant player in the steel pipe manufacturing sector, producing a diverse range of products primarily used in the construction industry, along with applications in water, oil and gas, and other sectors. The company's facilities are located in Hub, Balochistan, with its corporate office in Lahore.

The steel pipes and tubes industry is known for its sensitivity to economic cycles and market volatilities, including exchange rate fluctuations and changes in international steel prices. Despite these challenges, MSPI has managed to maintain its revenue streams and enhance gross and operating margins. The rating upgrade also takes into account the company's solid organizational structure and adequate capitalization, supported by a solely short-term borrowing strategy for managing working capital.

The outlook revision from "Rating Watch – Developing" to "Stable" reflects VIS's confidence in MSPI’s ongoing capability to navigate economic pressures while sustaining profitability and liquidity. Future ratings will depend on the company’s ability to return to and surpass its historical coverage levels and to continue bolstering its financial stability.