Pakistan Credit Rating Agency Limited Maintains Ratings of Nishat Mills Limited
Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Nishat Mills Limited (NML) at “AA-” (Double A minus) and “A1+” (A One plus), respectively. The ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments.
The ratings reflect NML’s ability to maintain its leading position in the domestic textile industry. The company has a diversified revenue stream with large geographical market segmentation, and sound customer base, which have led to a sustainable business risk profile.
The entity continues to maintain good coverages, engendering sound risk absorption capacity against the challenging business dynamics. In addition, ratings incorporate consistent dividend stream from a sizeable diverse strategic investment book. Meanwhile, NML’s association with Nishat Group as its flagship company remains a key rating factor.
These ratings are dependent on NML’s ability to effectively manage its business profile – competitiveness in core textile business and stable dividend stream. Moreover, preserving the sound capital structure and financial coverages would be important. Meanwhile, NML would benefit from strengthening of governance framework.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425