The Pakistan Credit Rating Agency (PACRA) has maintained the long-term rating at ‘A+' (Single A Plus) and the short-term rating at ‘A1' (A One) of Nishat Mills Limited. These are applicable to the senior unsecured creditors of the entity. The secured TFC issue of PKR 600mln, due for final redemption in September 2005, has been assigned a short-term rating of ‘A1' (A One). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the ability of the company to generate stable core earnings despite a difficult operating environment, arising from the company's strong competitive edge and reduced risks to market volatility. This emanates from the diverse product and customer base, increased focus on value-addition and superior customer relations. The improving dividend income stream from associated companies also augurs well for future performance. Further, NML's conscious efforts towards preparation for the challenges as well as the opportunities following the termination of the quota regime are also a critical rating factor.

About the Corporation: Nishat Mills Limited (NML) is the single largest textile composite unit in Pakistan, with an installed capacity of 182,568 spindles and 586 Looms, including 472 high-speed Airjet looms. The company is a leading exporter of textile products having extensive spinning, weaving, dyeing, printing, finishing and stitching facilities. NML is the flagship company of the Nishat Group of Companies – one of the largest conglomerates with interests in the textiles, cement and financial sector. The Nishat Group family members and associated concerns collectively hold around 44% of NML's equity.