Press Release

VIS Reaffirms Entity Ratings of Best Exports (Pvt.) Limited

Karachi, June 30, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Best Exports (Pvt.) Limited (BEL) at ‘BBB/A-2’ (Triple B /A-Two). The medium to long-term rating of ‘BBB’ denotes adequate credit quality coupled with reasonable and sufficient protection factors. Moreover, risk factors are considered variable with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on June 30, 2021.

The ratings assigned to BEL take into account the company’s presence in the export-oriented value-added textile segment underpinned by stable demand and favorable regulatory regime. The company reported modest increase in topline with marginal improvement in gross margins during FY21 on the back of higher volumetric sales and favorable prices of textile made-ups, which contributed ~60% to the sales mix. In line with the continuing trend, net revenues depicted some growth in the ongoing year as well. Cash flow coverages have remained adequate on a timeline basis. Leverage indicators have remained comfortable with steady growth in equity base on account of profit retention, and limited reliance on long-term borrowings. Meanwhile, the ratings continue to remain constrained by relatively limited scale of operations. The ratings remain dependent on maintaining liquidity and capitalization indicators at adequate levels while achieving projected revenue and profitability. In addition, the implementation of the expansion plan within stipulated timeframe is considered important.


For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-66 (Ext. 306) or email at info@vis.com.pk



Faryal Ahmed Faheem
Deputy CEO


VIS Entity Rating Criteria: Corporates (August 2021)
https://docs.vis.com.pk/docs/CorporateMethodology202108.pdf

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .