VIS Maintains Entity Ratings of Shahbaz Garments (Private) Limited with 'Rating Watch-Negative' Status - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- April 30, 2020 (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 (VIS), while maintaining the entity rating of 'BBB+/A-2' (Triple B Plus/A-Two) assigned to Shahbaz Garments (Private) Limited (SGL), has placed the same on 'Rating Watch - Negative' status. 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. The previous rating action was announced on May 2, 2019.

Shahbaz Garments (Private) Limited (SGL) is engaged in manufacturing and sale of various types of industrial gloves, along with fabric and yarn. The parent group also owns five other companies in Pakistan including Beltexco Limited (BEL), Prime Safety Limited (PSL), Midas Clothing Limited (MCL), Industrial Clothing Limited (ICL), and Work Clothing Limited (WCL). The registered office of SGL is based in Karachi. The company has three manufacturing units, out of which two units are based in Faisalabad, while one unit is based in S.I.T.E Karachi.

The revision in rating outlook reflects prevailing uncertainty in textile...