Karachi, July 18, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Sadaqat Limited (SL) at ‘A/A-2’ (Single A /A-Two). 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. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on February 23, 2018.
SL is one of the well-known value-added textile units operating from Faisalabad. SL is mainly involved in manufacturing and export of a wide range of home textile products and holds nearly 5% – 7% market share of annual bed ware exports.
The assigned ratings take into consideration the experience of sponsoring family in the textile industry, growth in sales and profits, and further enhancement in production capabilities. Being primarily an export oriented company, recent rupee devaluation also bodes well for the profitability. The ratings also take into account and would remain dependent upon adequate debt service coverage and liquidity profile as well as maintenance of gearing and debt leverage indicators.
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
Category: General Business News