Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Asher Imran Spinning Mills (Pvt.) Limited at 'A-/A2'. These ratings indicate good credit quality and a positive outlook for timely repayment of obligations, with the outlook remaining stable.

According to VIS Credit Rating Company Limited, AISML, a subsidiary of Comfort Knitwears (Pvt.) Limited, operates within Pakistan’s textile spinning sector, which faces several challenges. These include raw material availability, energy shortages, and regulatory changes. Despite these hurdles, the company benefits from operational and financial support from its sponsors, contributing to its stability.

AISML's financial risk profile shows improvement in profitability, supported by a favorable product mix and stable exchange rates. Enhanced debt service capacity and reduced debt obligations have strengthened capitalization metrics. The company’s liquidity profile has also improved, with sufficient cash flows to meet working capital needs.

Future ratings for AISML will depend on its ability to manage client concentration risk and navigate competitive and regulatory challenges. Effective management of energy costs and maintaining improvements in financial metrics will be crucial for sustaining its credit profile.