Press Release

VIS Reaffirms Entity Ratings of Best Exports (Pvt.) Limited

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Best Exports (Pvt.) Limited (BEL) at ‘BBB/A-2’ (Triple B/A-Two). The medium to long-term rating of ‘BBB’ denotes adequate credit quality coupled with reasonable and sufficient protection factors. Moreover, risk factors are considered variable 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 and risk factors considered small. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on November 5, 2018.

BEL is a small sized weaving unit that is primarily involved in manufacturing and export of grey, bleached, dyed and made ups consisting of bed sets, pillow covers, quilt covers, cotton bags, table covers and curtains. The assigned ratings take into account BEL’s presence in export-oriented value-added textile segment. The management’s focus on expanding current operations and growth in value-added exports bodes well for the company. Adequate liquidity and coverages has provided comfort to the assigned ratings. However, the ratings remained constrained by relatively limited scale of operations. Further, maintenance of low leveraged capital structure is considered a key rating factor.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at info@vis.com.pk



Javed Callea
Advisor


Applicable rating criterion: 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 December 30, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.