Press Release

VIS Reaffirms Entity Ratings of H.A Fibres (Pvt.) Limited

Karachi, February 26, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of H.A Fibres (Pvt.) Limited (‘HAFL’ or ‘the Company’) at ‘A/A2’ (Single A/A Two). 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' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on December 10, 2024.

Incorporated in 2006 under Companies Ordinance, 1984, HAFL’ operates as a private limited company. The Company is primarily engaged in the manufacturing and sale of yarn within the textile value chain. Its registered office is located in Lahore, while the manufacturing facilities are situated at 6-Km Khanewal Road, Sujhan Pur, Multan and 3-Km Jhang Road, Muzaffargarh.

Assigned ratings incorporate the business risk profile of the domestic spinning sector, which continues to face challenges including high energy costs, local raw material availability constraints, and intense competition. The ratings reflect the Company’s strengthened business profile following merger with its sister concern, Husnain Textiles, resulting in enhanced operational scale, a larger asset base, and improved cost efficiencies. HAFL benefits from experienced ownership and management, as well as ongoing investments in systems and energy-efficient initiatives, which support stronger operational controls and resilience. While sector dynamics continue to exert pressure on margins, HAFL’s focus on operational efficiency and gradual modernization provides partial mitigation against industry challenges. The financial risk profit is assessed as low supported by a very low gearing ratio. However, sustained performance amid sector volatility will remain important for the maintenance of the ratings.

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

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 February 26, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.