Press Release

VIS Assigns Initial Entity Ratings to H.A Fibres (Pvt.) Limited

Karachi, April 3, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-’/A-2’ (Single A Minus/A-Two) to H.A Fibres (Pvt.) Limited (HAFL). 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 repayment, sound liquidity factors and good company’s fundamentals. Outlook on the assigned ratings is ‘Stable’.

HAFL is engaged in the sales of 100% cotton carded compact yarn having 41,844 spindles while sales is generated through both local & export markets with counts ranging from 10/S to 60/S for multiple uses. Shareholding is mainly vested with the sponsoring family which is actively involved in the day to day affairs of the company. The group also operates another spinning mill with the name of “Husnain Textile Mills (Pvt.) Limited” (HTML) having 92,424 spindles; HAFL holds 30% equity in HTML. The company generated sales growth during the last three years through volumetric increase and favorable prices which impacted profits favorably. The company has a moderate financial risk emanating from adequate coverages, manageable leverage indicators and sound liquidity profile. The ratings are dependent upon maintenance of gearing ratio below ‘1x’.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Jamal Abbas Zaidi

Applicable rating criterion: Industrial Corporate (May, 2016)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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