PACRA Assigns Initial Entity Ratings to Maksons Textile (Private) Limited

Lahore, March 22, 2018 (PPI-OT): The ratings account for financial strength of the company’s sponsors – AL-Tariq Group; having expertise in textile engineering. This provides cushion to relatively stretched financial risk profile of Maksons, characterized by high leveraging and adequate debt servicing ratio. Free cashflows, though small in size, demonstrated stable and rising trend. Company caters to niche market in textile industry providing textile solutions in the form of semi-finished and finished fabrics; reflecting good in gross margins. Company’s bottomline, though small in size, has remained stable over years. With latest BMR activities, the company is expected to bring efficiencies and growth, going forward,

The ratings are dependent on rationalization of top ten client concentration, with anticipated growth in topline. Risk absorption capacity would improve with scheduled repayments easing out leveraged capital structure. Debt services overages should be closely monitored.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com