Karachi: VIS Credit Rating Company Limited (VIS) has assigned an ‘A1 (plim)’ preliminary rating to At-Tahur Limited’s proposed Short Term Sukuk (STS). This rating underscores a strong likelihood of timely repayment of short-term obligations, backed by excellent liquidity factors. The entity ratings for At-Tahur Limited, known by its brand name ‘PREMA’, are ‘A-/A2’ with a ‘Stable’ outlook.

At-Tahur Limited, operational in farming since 2008, introduced the ‘Prema’ brand in 2009. The company offers a range of products including pasteurized milk, yogurt, and other dairy items, along with eggs and honey.

The company plans to issue a short-term, secured, privately placed Sukuk worth Rs. 750 million, including a Green Shoe Option of Rs. 150 million. This marks At-Tahur’s second STS issuance, with a tenure of up to six months. The profit will be payable at maturity on the outstanding principal at a rate of 6M Kibor plus 1.5%. The company’s earlier STS, worth Rs. 750 million, is set to mature in June 2025.

The ‘A1’ rating reflects the proposed security structure of STS-2, including a charge over the biological assets of the company amounting to Rs. 750 million with a 25% margin. The maintenance of a Debt Payment Account adds to the rating’s credibility. While the company has seen a contraction in profitability, liquidity metrics and debt servicing coverage have improved, and leveraged ratios remain adequate.