VIS Reaffirms ER Of Siara Textile Mills Ltd.

VIS Credit Rating Company Limited has reaffirmed the entity ratings of Siara Textile Mills (Pvt.) Limited at triple B-minus/A-two

KARACHI, (UrduPoint / Pakistan Point News - 26th Mar, 2020 ) :VIS Credit Rating Company Limited has reaffirmed the entity ratings of Siara Textile Mills (Pvt.) Limited at triple B-minus/A-two.

The medium to long-term rating of 'BBB-' denotes adequate credit quality with reasonable and sufficient protection factors. Moreover, risk factors are considered variable with possible changes in economy, said release on Thursday.

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'. The previous rating action was announced on January 28, 2019.

STML is a small-sized spinning unit, with shareholding vested with the sponsoring family who is actively involved in day-to-day operations of the company. The assigned ratings take into account gradual improvement in cash flows along with sound coverages.