March 12, 2019 (MLN): VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘BBB+/A-2’ (Triple B-Plus /A-Two) to Kohinoor Mills Limited (KML).
According to a press release issued by VIS on this occasion, the medium to long-term rating of ‘BBB+’ denotes adequate credit quality coupled with reasonable protection factors. Meanwhile, the short-term rating of ‘A-2’ denotes good certainty of timely payments.
“Risk factors are considered variable if changes occur in the economy. Liquidity factors and company fundamentals are considered sound,” said the agency. Outlook on the assigned ratings is ‘Stable’.
Adding on, the press release said that the assigned ratings take into account the company’s adequate scale of integrated textile operations and factor in moderate business risk profile; the company has been able to increase its revenues and largely sustain profitability in a highly competitive international market
Further, the ratings incorporate KML as a key supplier to globally renowned brands while maintaining an adequate customer concentration.
Moreover, recent devaluation of Pak rupee and favorable government policies bode well for the company. The ratings also draw comfort from the company’s strong BoD profile, experienced management team and adequate corporate governance framework.
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