Karachi, April 18, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A/A-1’ (Single A/A-One) to Master Textile Mills Limited (MTML). The medium to long-term rating of ‘A’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-1’ denotes high certainty of timely payments coupled with excellent liquidity and good fundamental protection factors. Outlook on the assigned rating is ‘Stable’.
MTML operates as a family owned business with the shareholding vested among individuals of the sponsoring family and its associated concerns. It is a vertically integrated composite unit comprising spinning, weaving, denim, processing and apparel. The assigned ratings take into account MTML’s association with the Master Group, having interest in mattress business, textiles, automobile, engineering, chemical and energy sectors.
The ratings draw comfort from positive momentum in sales, margins and profitability indicators on a timeline basis, and notable experience of senior management in the industry. Moreover, the company is comfortably placed in terms of coverages and liquidity indicators. The ratings remain constrained by inherent volatility in the textile sector. The ratings remained dependent on maintenance of leverage indicators within acceptable limits.
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
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: http://jcrvis.com.pk/