December 04, 2025 (MLN):  VIS Credit Rating Company Limited (VIS) has upgraded the medium to long-term entity rating of Maple Leaf Cement Factory Limited (PSX:MLCF) from A (Single A) to A+ (Single A Plus), while reaffirming its short-term rating at A1 (A One).

The outlook on the assigned rating is Stable.

VIS noted that the medium to long-term rating reflects good credit quality with strong protection factors, while the short-term rating indicates a strong likelihood of timely repayment of obligations and excellent liquidity.

According to VIS, MLCF’s rating benefits from its established position in Pakistan’s cement sector and its strategic integration within KMLG.

The company is backed by a long-standing management team with deep industry expertise, supported by strong corporate governance practices, including active audit and remuneration committees ensuring transparency and accountability.

Operationally, MLCF has maintained stable production levels despite challenges such as subdued construction demand, volatile input costs, and energy price fluctuations.

The company’s resilient profitability is supported by strong pricing power, cost optimization initiatives, and efficient energy use, enabling it to sustain healthy margins and positive cash flows.

On the financial front, VIS highlighted MLCF’s conservative capital structure, marked by declining debt levels, a stronger equity base, and improved liquidity. Timely repayment of long-term obligations and reduced reliance on short-term borrowings have lowered leverage, while effective working capital management has strengthened liquidity buffers.

The company’s robust internal cash generation and subsidiary income further support its debt-servicing capacity. VIS noted that continued strengthening of the financial profile will remain important for future ratings.

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