Lahore, The VIS Credit Rating Company has reaffirmed the entity and short-term ratings of Agriauto Stamping Company (Pvt) Limited (ASC) at 'A-/A-2', signifying a stable credit outlook despite prevailing economic adversities.

According to VIS Credit Rating Company Limited, this affirmation reflects ASC’s sound liquidity, access to capital markets, and strong backing from the House of Habib, a major business conglomerate in Pakistan. ASC, a subsidiary of Agriauto Industries Limited, is recognized for its specialized manufacturing in the automotive sector, particularly in sheet metal stamping parts and catalytic converters. The company's market status as a leading producer in these segments underpins its rating levels.

The stable outlook is maintained even as ASC navigates through economic headwinds like inflation, currency depreciation, and policy rate increases that have adversely affected the auto industry's demand and supply chain, leading to a downturn in sales and financial pressures on the company. Despite these challenges, ASC's investment in manufacturing infrastructure and its strategic importance in the auto parts market contribute to its creditworthiness.

Future ratings will depend on ASC’s ability to improve profitability and maintain leverage within manageable levels, especially given the current economic conditions that have strained the company’s financial performance.