KARACHI: JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of single A minus/A-two to Indigo Textile (Private) Limited.

Long term rating of A- reflects good credit quality, adequate protection factors, and risk factors may vary with possible changes in the economy. Short term rating of A-2 denotes good certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors and minor risk factors. The outlook on the assigned ratings is stable, said press release on Tuesday.

ITPL was established in 2006 as a joint venture between Akhtar Group and Haji Khuda Bux Amir Umar.

The company is in the business of denim fabric manufacturing. Akhtar group specialises in the textile sector, particularly denim fabric and garments and has diversified in the dairy and power sectors.

Haji Khuda Bux Amir Umar group is engaged in the ginning, export, import, indenting of raw cotton and merchandising of cotton, blended yarns and other textile made ups since 1932. While sponsors have extensive experience in the textile sector, overall corporate governance framework has room for improvement.