Karachi, April 13, 2023 (PPI-OT): VIS Credit Rating Company Limited has maintained entity ratings of ‘BBB+/A-2’ (Triple B Plus/A-Two) of Transsion Tecno Electronics (Pvt) Limited (TTE). Outlook on the assigned ratings have been revised from ‘Stable’ to ‘Rating Watch – Developing’. The long-term rating of ‘BBB+’ signifies adequate credit quality with reasonable and sufficient protection factors.

Risk factors are considered variable if changes occur in the economy. Short term rating of ‘A-2’ denotes good certainty of timely payments; liquidity factors are and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Previous rating action was announced on August 29, 2022.

The revision in outlook is on account of closure of Company’s production plant owing to ongoing import restrictions which has resulted in shortage of vital raw materials and components, particularly, semi-knocked down (SKD) mobile kits. As per management, the Company has channeled the working capital liquidity towards profit bearing deposits, income from which is being used to partially cover fixed operating costs.

While continuation of plant closure remains a key concern, ratings draw comfort from low-leveraged balance sheet. VIS will continue to monitor developments pertaining to plant operations and management of operating expenses.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/