Karachi, VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Syntronics Limited (SL) at 'BBB+/A-2', denoting adequate credit quality with a stable outlook. The medium to long-term rating reflects reasonable and sufficient protection factors, albeit with variable risk factors influenced by economic changes. The short-term rating suggests a good certainty of timely payment, supported by sound liquidity factors and company fundamentals. This announcement follows the previous rating action on May 15, 2023.

According to VIS Credit Rating Company Limited, the assigned ratings encapsulate SL's business and financial risk profile, including its operational history since 1998, its role within the packaging sector, and the recent diversification into BOPP printing for the FMCG sector. Syntronics’ operational footprint extends from its head office in Islamabad to its manufacturing base in Khyber Pakhtunkhwa, underpinned by the Premier Group's industrial backing.

VIS’s analysis highlights the competitive and cyclical nature of the packaging sector, emphasizing Syntronics' market challenges, including dependency on the cement sector and the risks associated with raw material imports. Financially, the company has navigated demand constraints and rising costs, maintaining satisfactory performance in key metrics. Future ratings will depend on Syntronics’ ability to enhance profitability, manage financial risks, and improve capitalization and liquidity.