KARACHI, Feb 7: JCR-VIS credit rating company has assigned a medium to long-term rating of single A with a “stable” outlook to Bhanero Textile Mills Ltd. The short-term rating is A-1.

The ratings take into consideration the long standing operational history of the company’s main sponsor — the Umer Group. The ISO certified units of the group have undergone BMR on a continuous basis and strategy for capital expenditure has been well-planned, says a press release. The same has been supported by a sound capital structure, keeping debt leverage within acceptable limits.

The company’s earnings, over the years, have reflected consistent margins in a sector plagued with price volatility. Liquidity has been adequate with cash flow coverage over the years.

“However, the sector remains vulnerable to the international competitive forces, which may squeeze the market share of local spinners abroad,” JCR-VIS warns adding that it will closely watch the group’s endeavours towards vertical integration.