Press Release

VIS assigns Initial Ratings to M.K. Sons (Pvt.) Limited

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to M.K. Sons (Pvt.) Limited (MKSL). The medium to long-term rating of ‘A-’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and fundamental protection factors. Outlook on the assigned rating is ‘Stable’.
The ratings assigned to MKSL take into account the company’s presence in export oriented value-added textile segment, positive momentum in profitability on a timeline basis, sound liquidity and reasonable experience of management team in the relevant industry. Ratings also incorporate sound financial risk profile as manifested in sustenance of healthy margins and comfortable debt service coverages. M.K. Sons operates as a family owned business with the shareholding vested among individuals of the same family. The ratings remain constrained by overall high business risk related to inherent volatility in the textile sector coupled with relatively high leverage indicators. The ratings remain dependent on maintenance of margins, realization of projected targets, product diversification and incremental cash flow generation from recent capital expenditure coupled with evolution of sector dynamics.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8005) 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.