March 27, 2019: VIS Credit Rating Company Limited has assigned initial entity ratings of single A /A- One to Gohar Textile Mills (Pvt.) Limited.
The medium to long-term rating of 'A' denotes good credit quality with adequate protection factors.
Moreover, the risk factors may vary with possible changes in economy. The short-term rating of 'A-1' denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors.
The outlook on the assigned ratings is stable, said press release on Wednesday.
The ratings assigned to GTML take into account its long experience in export oriented value-added textile segment, positive momentum in profitability on a timeline basis, sound liquidity and reasonable experience of management team in the relevant industry.
The ratings derive strength from sustenance of healthy margins, low leverage indicators with minimal reliance on long-term borrowings and comfortable debt service coverages.