VIS assigns A1 short-term rating to BTL

May 21, 2026 (MLN): VIS Credit Rating Company Limited has reaffirmed its entity ratings for Blessed Textiles Limited (BTL) at A/A1 (Single A/Single A One), maintaining a Stable outlook on the Pakistan Stock Exchange-listed textile manufacturer.

The medium to long-term rating of 'A' reflects good credit quality with adequate protection factors, while the short-term 'A1' rating signals a strong likelihood of timely repayment of short-term obligations backed by excellent liquidity.

The previous ratings action had been announced on February 6, 2025.

VIS noted that while BTL maintains a well-established presence in the textile spinning and weaving segment, its credit profile remains characterized by thin profitability that continues to face demand and cost-side pressures in a commoditized industry with limited pricing flexibility.

Performance has nonetheless shown signs of stabilization following losses recorded in FY24.

Leverage has continued to rise on the back of increased reliance on short-term borrowings to meet working capital requirements, though VIS considers this manageable given adequate liquidity levels.

Debt coverage indicators remain weak but have shown relative stability, supported in part by lower financing costs and improved profitability compared to the prior year.

Looking ahead, VIS emphasized that improving profitability to generate adequate cash flows and debt coverage, while prudently managing capitalization levels, will be critical to sustaining the ratings at their current level.

 The aforementioned information was disseminated through a notification to Exchange.

Copyright Mettis Link News