Press Release

VIS Credit Rating Company Assigns Initial Entity Ratings to Rizwan Enterprises
 

Karachi, January 13, 2020: VIS Credit Rating Company Limited has assigned initial entity ratings of ‘A-/A-2’ (A Minus/A-Two) to Rizwan Enterprises (RE). Long Term Rating of ‘A-’ reflects good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Short Term Rating of ‘A-2’ signifies good certainty of timely payment, sound liquidity factors and company fundamentals, and good access to capital markets. Risk factors are small. Outlook on the assigned ratings is ‘Stable’.

Rizwan Enterprises (RE) is a moderate size partnership concern engaged in manufacture and sale of textile products. Majority of company’s sales are exported and comprise fabric while made-ups represent a small proportion of revenues.

The assigned ratings derive strength from RE’s long experience in its business segment, strong growth momentum in sales and profitability and adequate business risk profile. Ratings also draw comfort from the firm’s sound financial profile as reflected by strong cash flows in relation to outstanding debt, healthy debt servicing ability and robust coverage of short term borrowings. Although leverage indicators are projected to increase due to debt draw down for funding ongoing expansion, gearing levels and debt servicing capacity are projected to remain manageable over the rating horizon. Ratings take note of the relatively moderate scale of operations and partnership structure of the organization.

Ratings take into account the company’s ability to achieve revenue growth through expansion, while ensuring growth in margins and profitability, along with committed policy to maintain strong capitalization indicators. Ratings remain dependent upon maintaining growth profile with sound financial indicators particularly leverage ratios.


For further information on this rating announcement, please contact Mr. Muhammad Ibad Desmukh (Ext: 205) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.




Javed Callea
Advisor


Applicable Rating Criteria: Industrial Corporates (May 2019)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Corporate-Methodology-201904.pdf

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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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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