Karachi: VIS Credit Rating Company Limited has assigned a preliminary ‘A-1’ rating to At-Tahur Limited’s proposed Short Term Sukuk, indicating a strong likelihood of timely repayment due to excellent liquidity factors and stable financial outlook.

According to VIS Credit Rating Company Limited, the preliminary rating reflects the robust security structure of the proposed Sukuk, which includes a charge over current and biological assets totaling Rs. 750 million. The issuance, aimed at bolstering At-Tahur Limited’s working capital, will feature a six-month tenor with profit payable upon maturity at a rate tied to the 6M Kibor plus 2%.

At-Tahur Limited, known for its ‘Prema’ brand of dairy products launched in 2009, has shown consistent revenue growth through FY23 and the first nine months of FY24, despite facing margin pressures. The company anticipates a profitability rebound, focusing on high-margin products. The rating also draws strength from a positive working capital cycle, adequate short-term borrowing coverage, low leverage, and satisfactory debt service capabilities.