Press Release

VIS Reaffirms Entity Rating of Suraj Cotton Mills Limited

Karachi, July 22, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Suraj Cotton Mills Limited (‘SURC’ or the ‘Company’) at ‘A+/A1’ (Single A plus/ A one). Medium to long term rating of 'A+' indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A1' indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on assigned ratings remains ‘Stable’. Previous Rating action was announced on May 07, 2025.

Established in 1984, SURC is a public listed company. It began commercial operations in 1985 and is principally engaged in manufacturing and sale of yarn and fabric mainly to local companies, with some direct exports. The registered office of the Company is located in Lahore, while its production facilities are situated in Karachi, Shahkot, and Raiwind. During FY25, the Company discontinued operations at one of its spinning plants (Karachi unit), pending replacement of the obsolete machinery.

SURC benefits from its longstanding presence in the spinning and weaving segments of the local textile sector, supported by an established, albeit concentrated, customer base. The Company’s financial risk profile is underpinned by increase in net margin, comfortable capitalization metrics, and a strong liquidity profile.

Although topline growth moderated amid challenging macroeconomic conditions, profitability remained broadly stable, supported in part by sizable other income from investments. Healthy cash flow generation continued to underpin strong debt coverages. Going forward, the Company’s ability to maintain profitability and operational stability amid volatile sector dynamics will remain an important consideration for the ratings.

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.









Applicable Rating Criteria:

VIS Rating Criteria: Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright July 22, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.