VIS Reaffirms ER Of Zephyr Textile

VIS Credit Rating Company Limited has reaffirmed Entity Ratings (ER) assigned to Zephyr Textile Limited at triple B-Plus/A-Two

KARACHI, (UrduPoint / Pakistan Point News - 4th Dec, 2019 ) :VIS Credit Rating Company Limited has reaffirmed Entity Ratings (ER) assigned to Zephyr Textile Limited at triple B-Plus/A-Two.

The medium to long-term rating of "BBB+" denotes adequate credit quality coupled with reasonable protection factors. Moreover, risk factors are considered variable if changes occur in the economy.

The short-term rating of "A-2" denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned ratings is stable. The previous rating action was announced on Oct. 11, 2018, said press release on Wednesday.

The ratings assigned to ZTL take into account its moderate business risk profile emanating from a fairly diversified revenue stream within the textile industry and experienced senior management led by the sponsoring family.

ZTL is a weaving and finishing unit and primarily operates in grey and finished fabric, towel and made-ups. The company has been making a gradual shift towards value-added textile products particularly commercial dying of knitted fabric for other companies and ladies fabric. The ratings are constrained by comparatively high gearing indicators and limited scale of operations, leading to heightened competitive challenges for the company.