Press Release

VIS Maintains Entity Ratings of M.K.Sons (Pvt) Limited

Karachi, March 5, 2021: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of M.K.Sons (Pvt.) Limited (MKSL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ signifies good credit quality with strong 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 company fundamentals. Outlook on the assigned ratings has been revised from ‘Rating Watch-Negative’ to ‘Stable’. The previous rating action was announced on April 27, 2021.
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 enhancement of margins and comfortable debt service coverages. Further, owing to reduction in benchmark rates, the financing cost for the company has reduced, reflecting positively on the bottom line. Given improvement in the company’s operational performance owing to pandemic led boom in textile sector during the period under review, the outlook assigned to MKSL’s ratings has been revised to ‘Stable’. Even though concerns of a more wave of Covid-19 remain elevated, VIS expects the order book for the industry to remain strong in the ongoing year, subsiding business risk concerns. However, the ratings remain sensitive to relatively high leverage indicators. The ratings are 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 post ongoing pandemic.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 or email at info@vis.com.pk mailto:info@vis.com.pk.





Faryal Ahmed Faheem
Deputy CEO

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 March 05, 2021 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.