Press Release

VIS Assigns Initial Entity Ratings to H.A Fibres (Pvt.) Limited

Karachi, April 3, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-’/A-2’ (Single A Minus/A-Two) to H.A Fibres (Pvt.) Limited (HAFL). The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely repayment, sound liquidity factors and good company’s fundamentals. Outlook on the assigned ratings is ‘Stable’.

HAFL is engaged in the sales of 100% cotton carded compact yarn having 41,844 spindles while sales is generated through both local & export markets with counts ranging from 10/S to 60/S for multiple uses. Shareholding is mainly vested with the sponsoring family which is actively involved in the day to day affairs of the company. The group also operates another spinning mill with the name of “Husnain Textile Mills (Pvt.) Limited” (HTML) having 92,424 spindles; HAFL holds 30% equity in HTML. The company generated sales growth during the last three years through volumetric increase and favorable prices which impacted profits favorably. The company has a moderate financial risk emanating from adequate coverages, manageable leverage indicators and sound liquidity profile. The ratings are dependent upon maintenance of gearing ratio below ‘1x’.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.


Jamal Abbas Zaidi
Advisor

Applicable rating criterion: Industrial Corporate (May, 2016)
http://jcrvis.com.pk/docs/Corporate-Methodology-201605.pdf

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