VIS reaffirms Fatima Fertilizer’s long-term entity rating at AA+

Mettis Global reported that VIS Credit Rating Company has kept Fatima Fertilizer's entity ratings at AA+/A1+ with a stable outlook. The medium to long-term AA+ grade signals high credit quality and modest risk, while the short-term A1+ grade points to the highest capacity to meet short-term debt on schedule. VIS had last reviewed the ratings on August 11, 2025.

VIS attributed the ratings to the company's strong standing in the domestic fertilizer sector, where its product range includes Calcium Ammonium Nitrate, Nitro Phosphate and Urea. The agency called the risk profile conservative, citing a substantial equity base, reduced borrowings at the end of 1HCY26 and sufficient liquidity. Earnings held firm, helped by a product mix and pricing that worked in the company's favour, although borrowing has tilted toward short-term funding.

Coverage ratios softened after the company's operating footprint changed, and weaker funds from operations lowered the FFO-to-total debt ratio even as debt fell. VIS expects the company to keep generating cash and to stay prudent with borrowing, which it sees as supportive for the ratings. Fatima is a joint venture of Fatima Group and Arif Habib Group, headquartered in Lahore, with three Punjab facilities that together can produce roughly 2.57 million MT annually. The Sheikhupura plant moved to Fatimafert Limited from July 1, 2024, and the Multan plant moved to Pakarab Fertilizers Limited from January 1, 2025, both as wholly owned subsidiaries.