Press Release

VIS assigns initial ratings to Master Textile Mills Limited

Karachi, April 18, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A/A-1’ (Single A/A-One) to Master Textile Mills Limited (MTML). The medium to long-term rating of ‘A’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-1’ denotes high certainty of timely payments coupled with excellent liquidity and good fundamental protection factors. Outlook on the assigned rating is ‘Stable’.

MTML operates as a family owned business with the shareholding vested among individuals of the sponsoring family and its associated concerns. It is a vertically integrated composite unit comprising spinning, weaving, denim, processing and apparel. The assigned ratings take into account MTML’s association with the Master Group, having interest in mattress business, textiles, automobile, engineering, chemical and energy sectors. The ratings draw comfort from positive momentum in sales, margins and profitability indicators on a timeline basis, and notable experience of senior management in the industry. Moreover, the company is comfortably placed in terms of coverages and liquidity indicators. The ratings remain constrained by inherent volatility in the textile sector. The ratings remained dependent on maintenance of leverage indicators within acceptable limits.

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

Javed Callea

Applicable rating criterion: Corporates (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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