Press Release
VIS Assigns Initial Entity Ratings to Bhimra Textile Mills (Pvt.) Limited
Karachi, March 26, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘BBB-’/A-2’ (Triple B Minus/A-Two) to Bhimra Textile Mills (Pvt.) Limited (BTML). The medium to long-term rating of ‘BBB-’ denotes adequate credit quality coupled with reasonable & sufficient 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 repayment, sound liquidity factors and good company’s fundamentals. Outlook on the assigned ratings is ‘Stable’.
BTML is small size spinning mill which generates 100% sales through local customers. Shareholding is mainly vested with the sponsoring family which is actively involved in the day to day affairs of the company. The group also manages a well-known café in Lahore. The company generated sales growth during last three years through volumetric increase and favorable prices which impacted profits favorably. Trade receivables of the company continues to remain modest as yarn is mostly sold on the cash basis. The company has a moderate financial risk profile emanating from adequate coverages and manageable leverage indicators. The ratings are dependent upon maintenance of net profit margin, debt service coverage, and gearing ratios.
For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.
Javed Callea
Advisor
Applicable rating criterion: Industrial Corporate (May, 2016)
http://jcrvis.com.pk/docs/Corporate-Methodology-201605.pdf