Karachi: VIS Credit Rating Company Ltd. (VIS) has announced that the entity ratings of Arif Habib Limited (‘AHL’ or ‘the Company’) have been placed on ‘Rating Watch – Developing’ status. The ratings include a long-term rating of ‘AA-‘ (Double A minus), indicating high credit quality with strong protection factors. The short-term rating of ‘A1’ suggests a strong likelihood of timely repayment of short-term obligations backed by excellent liquidity factors. The last rating action took place on October 09, 2023.

According to VIS Credit Rating Company Limited, the decision to place AHL on ‘Rating Watch – Developing’ stems from the High Court of Sindh’s recent approval of a demerger involving certain non-core businesses. These businesses, along with associated assets, liabilities, and obligations, are set to be merged with Arif Habib Corporation Limited. The demerger’s effective date is yet to be determined. VIS has indicated that it will reassess the ratings once the Company releases its new financial statements following the demerger’s effective implementation.