Press Release

VIS Reaffirms Entity Ratings of Sadaqat Limited

Karachi, July 18, 2019: 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 further information on this rating announcement, please contact undersigned or Mr. Maimoon Rasheed at 021-35311861-70/ 042-35723411 or fax to 021-35311872-3.


Javed Callea
Advisor

VIS Entity Rating Criteria: Corporates (May 2019)
https://www.vis.com.pk/kc-meth.aspx

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 18, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.