VIS Upgrades Ratings Of Nadeem Textile Mills

VIS Credit Rating Company Limited has upgraded the entity rating of Nadeem Textile Mills Limited to triple B Plus/ A-Two from triple B /A-Two

KARACHI, (UrduPoint / Pakistan Point News - 9th Mar, 2020 ) :VIS Credit Rating Company Limited has upgraded the entity rating of Nadeem Textile Mills Limited to triple B Plus/ A-Two from triple B /A-Two.

Long-term rating of 'BBB+' reflects adequate credit quality, protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short-term rating of A-2 indicates good certainty of timely payment, liquidity factors and company fundamentals are sound.Access to capital markets is good. Risk factors are small. Outlook on the assigned ratings is stable. Previous rating action was announced on Dec.18, 2018, said release on Monday.

Nadeem Textile Mills Limited is engaged in the manufacturing and sale of yarn business for more than three decades and operates via two spinning units located in Nooriabad and Kotri, Sindh.

The rating derives impetus from long-standing association of the sponsors with the textile industry.

The upgrade in rating takes into account the continuation of double-digit growth in topline and improvement in gross margin. NTML's topline is derived from three major sources i.e. domestic sales (42%), direct export sales (32%) and indirect export sales (25%), with the latter being the growth driver for fiscal year 2018-19. Similar double digit growth has continued in first half of fiscal year 2019-20.