Press Release

VIS assigns initial ratings to Best Fibres (Pvt.) Limited

Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Best Fibres (Pvt.) Limited (BFL). 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-2’ denotes good certainty of timely payments coupled with sound liquidity and fundamental protection factors. Outlook on the assigned rating is ‘Stable’.

BFL is a medium-sized spinning unit located in Faisalabad, with shareholding vested within sponsoring family. The ratings assigned take into account higher sales, improved margins, adequate coverages and considerable relevant experience of the sponsor. Leverage indictors have improved on a timeline basis, though still on a higher side. The ratings also incorporate management’s focus on expanding its operations based entirely on internal sources while enhancing operational efficiencies. However, the ratings remained constrained by vulnerability of spinning sector to raw material prices, impact of currency fluctuations on imported raw material, and any adverse changes in regulatory duties. Further, corporate governance framework has considerable room for improvement. Ratings also take into account the projected reduction in leverage and gearing indicators along with a growth in capitalization. Shortfall therein over the rating horizon would be credited negative.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at

Javed Callea

Applicable rating criterion: Corporates (May 2019)

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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