Press Release

VIS Maintains Entity Ratings of Mustaqim Dyeing & Printing Industries (Pvt.) Ltd.

Karachi, January 18, 2021: VIS Credit Rating Company Limited (VIS) has maintained entity ratings of ‘A-/A-2’ (Single A Minus/Single A-Two) to Mustaqim Dyeing & Printing Industries (Pvt.) Ltd (MDPIPL). Rating outlook has been revised from ‘Rating Watch Developing’ to ‘Stable’. Long Term Rating of ‘A-’ reflects good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Short Term Rating of ‘A-2’ signifies good certainty of timely payment, sound liquidity factors and company fundamentals, and good access to capital markets. Risk factors are small. The previous rating action was announced on April 27, 2020.

MDPIPL is engaged in manufacturing, processing and export of yarn, fabric, home textiles, towels and socks. The company is part of G&T group that has over six decades of experience in various industries including textile, plastic resin and power generation. Assigned ratings take into account extensive experience of sponsors and long-standing relationship with clients.

The revision in rating outlook reflects satisfactory operating performance during FY20 and 1QFY21. Profitability indicators witnessed a decline during the review period due to higher finance costs; consequently, cash flow coverages decreased. However, sales revenue increased due to pandemic led boom in Pakistan’s textile sector. Going forward, improvement in profitability and liquidity profile is considered important from a ratings perspective. Gearing and leverage indicators have trended upwards due to elevated debt levels to finance working capital requirements and expansions; however the same remain at comfortable levels for the assigned ratings. Even though probable impact of Covid-19’s second wave remains elevated, VIS expects the order book for the industry to remain strong in the ongoing year, easing the business risk concerns.

For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk.




Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Industrial Corporates (April 2019)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Corporate-Methodology-201904.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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .