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The Pakistan Credit Rating Agency Limited
Press Release

Date
24-Dec-19

Analyst
Muhammad Hassan
muhammad.hassan@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Withdraws Entity Ratings of Kohinoor Textile Mills Limited

Rating Type Entity
Current
(24-Dec-19)
Previous
(28-Jun-19)
Action Withdraw Maintain
Long Term - A+
Short Term - A1
Outlook - Stable
Rating Watch - -

Subsequent to the decision of the management of Kohinoor Textile Mills Limited to discontinue the ratings, PACRA withdraws the Entity Ratings of Kohinoor Textile Mills with immediate effect.

About the Entity
Kohinoor Textile Mills Limited - a Kohinoor Maple Leaf Group (KMLG) company - listed on Pakistan Stock Exchange, commenced operations in 1958. The Company, operating from three geographical locations, is engaged in the manufacturing of yarn, fabric, and home textile products. Management control lies with Saigol family, which, along with associates, holds majority stake (~72%) in KTML. KTML owns 55% stake in Maple Leaf Cement Factory and 83% is Maple Leaf Capital, a private limited company. KMLG is one of the oldest business groups having interests mainly in textile, cement, and trading.

The overall control of KTML vests with eight members BoD including the CEO. Five board members belong to Saigol family, out of which three are in executive roles including the CEO, two are group affiliates, and one member is independent director. The CEO, Mr. Taufique Sayeed Saigol, oversees the company affairs through a management team with relevant experience in the textile industry

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.