VIS Credit Rating Company Reaffirms Entity Ratings of Indus Dyeing and Manufacturing Company Limited - Press Release issued by VIS Credit Rating Company Limited.

Lahore -- May 09, 2019 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited has reaffirmed the entity ratings of Indus Dyeing and Manufacturing Co Ltd (IDMC) at 'A+/A-1' (Single A Plus/A-One). Long Term Rating of 'A+' denotes good credit quality and adequate protection factors. Risk factors may vary with possible changes in the economy. Short Term Rating of 'A-1' signifies high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings is 'Stable'. The previous rating action for IDMC was announced on July 31, 2018.

Assigned ratings to IDMC incorporate the company's established track record in the spinning sector and strong financial profile. Ratings also take into account high business risk profile due to cyclical and competitive nature of the local spinning industry. However business risk profile is supported by expected elevated cotton prices, strong local demand (a number of players in the value added segment are undergoing expansions) and favorable Government policies for textile sector. Ratings remain dependent on maintaining strong financial risk profile over the rating horizon.

IDMC operates through three manufacturing facilities located in Karachi, Hyderabad and Muzaffargarh. The spinning segment operates through 178,896 spindles and has continued to operate at high capacity utilization levels. Further expansion in installed capacity is planned through addition of new spindles which are projected to be...