VIS Assigns Initial Ratings to Renacon Pharma Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- November 17, 2020 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of 'BBB+/A-2' (Triple B-Plus /A-Two) to Renacon Pharma Limited (RPL). The medium to long-term rating of 'BBB+' denotes adequate credit quality coupled with reasonable protection factors. Moreover, risk factors are considered variable if changes occur in the economy. The short-term rating of 'A-2' denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned rating is 'Stable'.

RPL is mainly engaged in manufacturing and sale of various types of Hemodialysis Concentrates in solution and powder forms for the local and international markets. The company also supplies imported dialyzers, bloodlines and AVF needles as there is no manufacturing unit in Pakistan. The assigned ratings take into account sponsor profile as controlling stake is owned by Treet Corporation Limited and a leadership position in the hemodialysis concentrates market. RPL has been able to capture around two-third market share since its dialysate products are considerably cheaper than foreign products while local players have also been unable to compete due to their small size and low quality products.

RPL has exhibited healthy growth in revenue over the past three years, driven by both increasing number of sessions sold and higher...