KARACHI: VIS Credit Rating Company Limited has maintained the entity ratings of Masood Textile Mills Limited at single A minus/A-two and instrument rating of ‘A’ single A of the secured and privately placed long-term Islamic certificates (Sukuk).
The medium to long-term rating of ‘A-’ signifies good credit quality with strong protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals.
The long-term rating of ‘A’ signifies good credit quality and adequate protection factors. Risk factors may vary with possible changes in the economy. Outlook on the assigned ratings has been revised from ‘Rating Watch Negative’ to ‘Stable’. The previous rating action was announced on August 06, 2021.
The ratings assigned to MTML take into account the moderate risk profile of the company underpinned by its presence in the export oriented value-added textile segment, fully integrated production unit giving complete control on quality maintenance coupled with presence of Chinese ownership in the company resulting in provision of synergistic benefits in terms of technical expertise.
Moreover, holistically business risk profile of the textile industry is supported by stable and growing demand as US-China Trade disruption enhance sales given major buyers continue to diversify procurement.
Ratings reflect the company’s established market position as one of the leading exporters along with long-standing business relationships with leading international brands.