Press Release

VIS Assigns Final Rating to Short Term Sukuk-7 of Mehmood Textile Mills Limited

Karachi, September 10, 2026: VIS Credit Rating Company Limited (VIS) has assigned final rating of ‘A1’ (A One) to Mehmood Textile Mills Limited’s (‘MTML’ or ‘the Company’) Short-term Sukuk 7 (STS-7). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Previous rating action was announced on July 17, 2026.

MTML raised a privately placed, secured Short-Term Sukuk (STS-7) of PKR 4,000 million (inclusive of PKR 1,000 million green shoe option) with 6 months tenure, to finance working capital needs. The Sukuk carries a single bullet repayment of principal at maturity. The profit rate is defined as 3M KIBOR + 1.25%, with the base rate set on last working day prior to the Issue Date and will be reset on a quarterly basis. Assigned rating reflects the credit enhancement arising from Sukuk payment mechanism wherein the Company shall maintain a Sukuk Payment Account (SPA), to be built up in the last 15 days of instrument maturity and complete funding to be arranged 7 working days before maturity date. In addition to this, MTML shall, all times, until the Payment Obligations have been fully satisfied and discharged, ensure that the limits of the short-term funded finance facilities sanctioned banks/financial institutions, remain unutilized equivalent to the Sukuk Issue Amount and MTML shall provide evidence of such sanctioned limits to the Investment Agent in form and substance acceptable to the Investment Agent.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

Instrument Rating
https://docs.vis.com.pk/Methodologies-2026/IRM-2026.pdf

VIS Issue/Issuer Rating Scale
https://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 September 10, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.