Press Release
VIS Reaffirms Entity Ratings of Metco Textile (Private) Limited
Karachi, January 22, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Metco Textile (Private) Limited (‘MTPL’ or ‘the Company’) at 'A-/A2' (Single A minus/A Two) with a “Stable” outlook. 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 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Previous rating action was announced on November 06, 2024.
MTPL was incorporated in 2008, is a private limited company primarily engaged in the spinning of yarn for the local market & export. The product line includes various types of yarn such as Cotton Carded Hosiery Yarn, Cotton Carded Weaving Yarn, Chief Value Cotton (CVC) yarn, Polyester-Cotton (PC) yarn and open-end yarn for the weaving and knitting industry. The Company has four yarn manufacturing units two units for cotton carded ring spun yarn, one unit for CVC & PC yarn and one unit for open-end yarn with total spindle count of about 59,840 at end-of FY25. The Company’s head office is located in Karachi while the manufacturing unit is situated in S.I.T.E Nooriabad, near Karachi.
The assigned ratings reflect the Company’s presence in the domestic spinning sector, supported by a diversified yarn product portfolio catering to both local and export markets. The Company benefits from operational efficiency, as evidenced by improved capacity utilization and stable production performance in recent periods. Ongoing investments in renewable energy, including solar installations and a forthcoming wind power project, are expected to provide partial mitigation against elevated energy costs, which remain a key challenge for the textile spinning industry. Business risk is influenced by cyclical demand patterns, intense competition, volatility in raw material availability, and sensitivity to energy tariffs and exchange rate movements. Profitability indicators show modest improvement, supported by higher sales volumes and lower finance costs, although margins remain under pressure due to competitive pricing and cost inflation. The financial risk profile is characterized by elevated reliance on short-term borrowings to meet working capital requirements, resulting in constrained liquidity and moderate leverage. Nevertheless, adequate debt servicing ability and internal capital generation provide comfort. Going forward, the ratings remain sensitive to the Company’s ability to maintain its operational performance, gradually benefit from energy efficiency initiatives, and manage its capital structure prudently amid a challenging operating environment.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf