Karachi, August 19, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Asher Imran Spinning Mills (Pvt.) Limited (AISML). 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 payment coupled with sound company fundamentals and liquidity factors. Outlook on the assigned ratings is ‘Stable’.

AISML is virtually a wholly-owned subsidiary of Comfort Knitwears (Pvt.) Limited (CKPL). CKPL is an export-oriented, vertically integrated knitwear apparel facility comprising spinning, knitting, dyeing and stitching facilities. AISML is an open-ended spinning unit that specializes in manufacturing and sale of yarn from recyclable waste material and cotton. AISML’s clients largely include export-oriented knitwear and hosiery units. The ratings incorporate extensive experience of sponsors in the textile industry and their diversified exposure to pharmaceutical and transportation businesses.

The ratings take into account sustainable margins during the outgoing year as a result of favourable yarn prices and economies of scale. Liquidity profile is underpinned by adequate cash flow coverages in relation to outstanding obligations. The ratings also incorporate moderately leveraged capital structure supported by profit retention. Whilst there is high cyclicality and competitive intensity for the spinning industry along with volatility in cotton prices, overall business risk profile of the textile industry is supported by relatively stable demand and favourable regulatory regime. However, ongoing economic uncertainties in the domestic and international markets may impact the growth in the textile segment. The ratings will remain sensitive to achieving projected growth in sales and profitability, maintaining margins, and improving gearing and liquidity indicators, going forward.

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: https://www.vis.com.pk/