Press Release

VIS Maintains Entity Ratings of Best Fibres (Pvt.) Limited

Karachi, May 25, 2026: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Best Fibres (Pvt.) Limited (‘BFPL’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). The 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. The short-term rating of ‘A2’ denotes good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating has been revised from ‘Positive’ to ‘Stable’. Previous rating action was announced on May 06, 2025.

BFPL, incorporated in 2017, is engaged in the manufacturing and sale of yarn and viscose fibre. The Company’s registered office and production facility are located in Faisalabad. The Company has been able to maintain its capacity utilization levels. The Company has been able increase its sales on the back of higher raw material volumes. Profitability is being hampered by lower gross margins and higher tax burden. A partial recovery in gross margins was witnessed in 1HFY26, supported by cost efficiencies from installation of solar power. Meanwhile, deleveraging efforts have kept debt servicing on an improving trend. Moreover, liquidity has remained adequate. Outlook on the assigned rating has been revised in view of pressure on margins due to volatile product pricing in a highly challenging operating environment. Going forward, the Company’s ability to improve margins and profitability while maintaining low gearing and sound coverages would remain important from ratings perspective.

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 May 25, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.