KARACHI: VIS Credit Rating Company Limited has assigned initial entity ratings of single A/A-One to Master Textile Mills Limited.

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-1' denotes high certainty of timely payments coupled with excellent liquidity and good fundamental protection factors. Outlook on the assigned rating is stable, said press release on Thursday.

MTML operates as a family owned business with the shareholding vested among individuals of the sponsoring family and its associated concerns. It is a vertically integrated composite unit comprising spinning, weaving, denim, processing and apparel.

The assigned ratings take into account MTML’s association with the Master Group, having interest in mattress business, textiles, automobile, engineering, chemical and energy sectors.

The ratings draw comfort from positive momentum in sales, margins and profitability indicators on a timeline basis, and notable experience of senior management in the industry.