Press Release
VIS Upgrades Entity Rating of Kohinoor Textile Mills Limited
Karachi, November 25, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the medium- to long-term entity rating of Kohinoor Textile Mills Limited from ‘A+’ (Single A Plus) to ‘AA-’ (Double A Minus) while maintaining the short-term rating at ‘A1’ (A One). The medium- to long-term rating of ‘AA-’ reflects high credit quality, with strong protection factors and modest risk, which may vary slightly due to economic conditions. The short-term rating of ‘A1’ indicates a strong likelihood of timely repayment of short-term obligations, supported by excellent liquidity. The outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on October 23, 2024.
Kohinoor Textile Mills Limited (KTML or “the Company”), a listed entity of the Kohinoor Maple Leaf Group, has been operating in the textile sector for over 70 years. The Company is engaged in spinning, weaving, processing, and stitching, with activities covering the textile value chain from yarn production to finished home textile products. Its product portfolio includes yarn, greige, dyed and printed fabrics, and made-ups. KTML serves both domestic customers and export markets, with overseas sales mainly directed to the United States and Europe. The registered office is located at 42-Lawrence Road, Lahore.
The assigned ratings reflect Kohinoor Textile Mills Limited’s established position in Pakistan’s textile sector, supported by operational experience and a diversified product portfolio across spinning, weaving, processing, and home textiles. The upgrade takes into account the Company’s consistent track record, long-standing relationships with international clients, and growing focus on higher-margin, differentiated products. Integrated operations across the Company’s business segments support production efficiencies, while ongoing investments in sustainable energy initiatives are geared toward reducing power costs and strengthening operating margins. While the Company however remains exposed to moderate to high business risk, driven by global demand fluctuations, intense competitive pressures, and volatility in raw material prices, the Company’s healthy capitalization and a conservative funding structure provides comfort. Ratings are further supported by sustained profitability and strong coverage. Liquidity remains sound, supported by adequate current assets coverage and a stable cash conversion cycle. Overall, prudent financial management, moderate leverage, and sustained cash generation underpin a strong financial risk profile.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable 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