Karachi, June 30, 2021 (PPI-OT):VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of DWP Technologies (Pvt.) Limited (DWPTL) at ‘A-/A-2’ (Single A Minus /A- Two). Outlook on the assigned rating has been revised from ‘Rating Watch-Negative’ to ‘Stable’. The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. The previous rating action was announced on July 13, 2020.
The ratings factor in DWPTL’s association with DWP Group; its presence in the ever-evolving highly skilled IT solutions and services sector coupled with extensive knowledge and expertise of the management team in the relevant industry. The ratings draw comfort from the company’s long-term business relations with the vendors comprising top-tier multinational information technology companies and customers including largest telecom companies and banking institutions of Pakistan. Barriers to entry are considered moderate due to demanding technical, financial and operational expertise for pre-qualification bidding.
Growth in revenue has been witnessed during the ongoing year on the back of increase in demand of technology related products during pandemic. Gearing has remained comfortable while debt leverage continued to remain high amid higher trade creditors and advances from customers. Liquidity profile is impacted due to incidence of substantial advance tax inbuilt in the business model, thereby constraining the long-term debt servicing capacity of the company. In addition, ratings remain sensitive to inherent uncertainty involving bidding contracts and vulnerability to performance risk.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
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