Press Release

VIS Assigns Initial Ratings to Asher Imran Spinning Mills (Pvt.) Limited

Karachi, Aug 18, 2022: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Asher Imran Spinning Mills (Pvt.) Limited (AISML). 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 payment coupled with sound company fundamentals and liquidity factors. Outlook on the assigned ratings is ‘Stable’.

AISML is virtually a wholly-owned subsidiary of Comfort Knitwears (Pvt.) Limited (CKPL). CKPL is an export-oriented, vertically integrated knitwear apparel facility comprising spinning, knitting, dyeing and stitching facilities. AISML is an open-ended spinning unit that specializes in manufacturing and sale of yarn from recyclable waste material and cotton. AISML’s clients largely include export-oriented knitwear and hosiery units. The ratings incorporate extensive experience of sponsors in the textile industry and their diversified exposure to pharmaceutical and transportation businesses.

The ratings take into account sustainable margins during the outgoing year as a result of favorable yarn prices and economies of scale. Liquidity profile is underpinned by adequate cash flow coverages in relation to outstanding obligations. The ratings also incorporate moderately leveraged capital structure supported by profit retention. Whilst there is high cyclicality and competitive intensity for the spinning industry along with volatility in cotton prices, overall business risk profile of the textile industry is supported by relatively stable demand and favorable regulatory regime. However, ongoing economic uncertainties in the domestic and international markets may impact the growth in the textile segment. The ratings will remain sensitive to achieving projected growth in sales and profitability, maintaining margins, and improving gearing and liquidity indicators, going forward.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8005) and/or the undersigned at 021-35311861-66 (Ext. 306) or email at info@vis.com.pk


Faryal Ahmad Faheem
Deputy CEO


VIS Entity Rating Criteria: Corporates (August 2021)
https://docs.vis.com.pk/docs/CorporateMethodology202108.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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .