Press Release

VIS Maintains Entity Ratings of Best Fibres (Pvt.) Limited

Karachi, April 05, 2021: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Best Fibres (Pvt.) Limited at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. 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 has been revised from ‘Rating Watch-Developing’ to ‘Stable’. Previous ratings action was announced on April 27, 2020.

BFL is a spinning unit located in Faisalabad, with shareholding vested within sponsoring family. The ratings assigned take into some recovery in revenue during HY21 after a notable decline in yarn sales due to imposition of CNIC condition and imposition of sales tax during FY20. The ratings draw comfort from adequate coverages and declining debt levels which along with equity injection from the sponsors have led to increased financial flexibility and continuous improvement in leverage indicators. The ratings also incorporate management’s focus on expanding the scale of spinning operations mainly from internal sources. However, the ratings remained constrained by vulnerability of spinning sector to raw material prices, exchange rate risk emanating from cotton and viscose, and any adverse changes in regulatory duties. Going forward, the ratings remain dependent on the company’s ability to sustain profitability, coverages and capitalization indicators.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at 021-35311861-70 (Ext. 201) or email at

Faryal Faheem Ahmed
Deputy CEO

VIS Entity Rating Criteria: Corporates (May 2019)

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 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited