Press Release
VIS Reaffirms Entity Ratings of Crescent Bahuman Limited
Karachi, July 9, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Crescent Bahuman Limited (‘CBL’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). The 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. The short-term rating of ‘A2’ denotes good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on June 27, 2025.
CBL is a vertically integrated textile manufacturer principally engaged in the production of denim fabric and garments. The Company’s operations span spinning, dyeing, weaving, washing, stitching and finishing, enabling control over key stages of the value chain. CBL primarily caters to export markets, with garments forming the major revenue contributor. The Company’s manufacturing facilities are located at Pindi Bhattian, with head office in Lahore. CBL is setting up another facility at the Quaid-e-Azam Business Park (QABP), near Lahore, at a leased premises.
The assigned ratings reflect the Company’s established presence in the denim fabric and garments segment and vertically integrated textile operations. Ratings draw support from the Company’s export-oriented sales profile, along with healthy utilization levels in core value-added operations. The Company’s power arrangements are considered adequate, with further enhancement in solar capacity anticipated for supporting cost-efficiencies.
While topline increased in FY25 due to steady demand of garments, profitability was under pressure on account of elevated energy costs and input cost pressures. Improvement was noted during 9MFY26, with recovery in profitability, supported by lower cotton prices, rationalization in power cost and operational efficiencies in the apparel segment. Financial risk profile remained manageable, with a consistent capital structure and adequate liquidity. While debt coverage weakened during FY25 due to lower FFO, improvement was witnessed during 9MFY26 on the back of higher cash flow generation. Going forward, ratings will remain dependent on sustained growth profitability along with prudent execution of planned FY27 capacity expansion without material deterioration in the financial risk profile.
For further information on this ratings announcement, please contact at 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