VIS reaffirms entity ratings of Al-Ghazi Tractors Limited

According to Mettis Global, VIS Credit Rating Company has kept Al-Ghazi Tractors Limited at A+ for medium to long-term obligations and A1 for short-term ones, with the outlook still Stable. The agency said the A+ grade signals good credit quality with adequate protection factors, and that the A1 grade points to a strong chance of timely short-term repayment backed by excellent liquidity. The previous rating action came on October 17, 2025.

AGTL is a listed agricultural machinery maker, incorporated in June 1983, that assembles and sells tractors, implements and spare parts. Al-Futtaim Group acquired a controlling interest in 1991 and remains the majority shareholder, while CNH Industrial Italia is a technical partner for New Holland tractor assembly. Its plant at Dera Ghazi Khan can produce 30,000 units a year, and a network of 104 dealers operates largely in Punjab.

The ratings reflect a low financial risk profile and a healthy balance sheet, set against business risk from a shrinking market share over four years. Profitability weakened in CY25 on lower net sales and higher operating costs, although capitalization and debt coverage remained strong after long-term borrowings were repaid. Metrics improved modestly in 1QCY26 on higher sales and better margins, helped by a Green Tractor Scheme covering 19,500 subsidised tractors in Punjab.