Press Release

VIS Reaffirms Entity Ratings of Dynamic Sportswear (Pvt) Limited

Karachi, July 28, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Dynamic Sportswear (Pvt) Limited at ‘A-/A2’ (Single A minus/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' indicates Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remain ‘Stable’. Previous rating action was announced on July 01, 2024.

Dynamic Sportswear (Pvt) Limited (‘DSPL’ or ‘the Company’) is a private limited company incorporated in April, 1992 as a family-owned textile manufacturer. The Company has an operational history of more than three decades of producing and exporting sports, athletics, medical and casual socks for men, women, and children. It has a vertically-integrated unit that produces various types of heel formats (y-heel, reciprocated/real, pouch, tube) using modern knitting, toe linking, over-locking, dyeing and finishing machines. The head office and factory of the Company are located in Lahore.

The assigned ratings take into consideration the medium business risk profile of textile sector in Pakistan, shaped by economic cyclicality, intense competition and structural challenges. The consumer goods nature of the products of the company attracts sensitivity in its domestic and international demand in alignment with the economic cycles.
Ratings incorporate the financial risk profile of DSPL characterized by manageable capitalization profile, recovery in profitability following depressed demand in FY23, a healthy liquidity profile and coverage metrics with an adequate Debt Service Coverage Ratio (DSCR). However, high client concentration remains a concern from the ratings perspective. Looking ahead, the management is making efforts to diversify and expand its clientele.

For further information on this ratings announcement, please contact on 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 July 28, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.