KARACHI, Oct 3: JCR-VIS Credit Rating Company has assigned the preliminary rating of single A to the proposed TFC-2 of Rs400 million of Gulistan Textile Mills. This will be converted into final rating after examination of all signed legal documents, says a press release. “The outlook on this rating is stable.”

Along with the general charge on assets Gulistan Mills will provide external credit enhancement for the TFC-2 issue by providing confirmation of unutilized credit lines from A-rated banks to the trustee.

Gulistan Mills had issued its first TFC (term finance certificates) in 2001.

“The current steps to focus on the USA market and overall decline in interest rates is expected to improve profitability and bring about the required improvements in debt leverage and cashflow coverage to debt servicing requirements.”

“JCR-VIS will closely monitor the developments in this regard.”