Press Release
VIS Reaffirms Entity Ratings of Dynamic Sportswear (Pvt) Limited
Karachi, August 24, 2026: 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 28, 2025.
Incorporated in 1992, Dynamic Sportswear (Pvt) Limited (‘DSPL’ or ‘the Company’) is a family-owned, Private Limited Company engaged in producing and exporting sports, athletics, medical and causal socks mainly to US and Europe. The Company operates a high-tech knitting unit that produces various types of heel formats 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 account Company’s presence in the textile sector, which is characterized by economic cyclicality, intense competition, and exposure to fluctuations in domestic and international demand. The Company’s operational performance is supported by its diverse range of socks and export-oriented sales, with steady performance reflected by improvement in topline and profitability margins. However, ratings remain constrained by significant client concentration, although partly mitigated by Company’s longstanding relationships with key customers.
The ratings also incorporate DSPL’s adequate liquidity profile while working capital cycle has lengthened during the period, due to changes in receivable terms. Moreover, the Company also maintains moderate capitalization profile and debt coverage metrics. Going forward, the management has plans for debt-funded BMR however, capitalization is expected to remain at moderate levels. Looking ahead, sustaining profitability, broadening the client base, and efficient working capital management will remain key rating considerations.
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