Karachi: VIS Credit Rating Company Limited has announced the retention of Shifa International Hospitals Limited's ratings at 'AA-/A1', reflecting strong credit quality and excellent short-term liquidity. However, the outlook has shifted from 'Stable' to 'Positive', indicating potential for future improvements.

Shifa International Hospitals Limited, established in 1987 and public since 1989, is a key player in Pakistan's healthcare sector. The company operates hospitals and medical centers in Islamabad and Faisalabad, with a focus on expanding its healthcare services across the country. Its business operations are supported by a stable demand for healthcare services, despite challenges like regulatory complexities and market competition.

The company's financial profile has strengthened, driven by revenue growth in fiscal year 2024 and the first half of 2025. This growth is attributed to increased service volumes, price adjustments, and effective cost management strategies. The company's net profitability and margins have improved, supported by strong cash flows and reduced debt levels.

The revision in outlook to 'Positive' stems from Shifa's expansion plans, including the development of Shifa National Hospital Faisalabad, set to begin operations by the end of 2025. Additionally, strategic initiatives like divesting from non-profitable segments and consolidating operations are expected to enhance efficiency and financial performance.

VIS's assessment underscores Shifa International Hospitals Limited's solid position in the healthcare industry, noting its ability to navigate economic conditions and maintain financial stability.