The Pakistan Credit Rating Agency Limited
16-Dec-25
Analyst
Tasveeb Idrees
Tasveeb.Idrees@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Methodology | Corporate Rating | Jul-25
- Methodology | Debt Instrument Rating | Sep-25
Related Research
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PACRA Withdraws the Ratings of Mahmood Textile Mills Limited | PPSTS | PKR 3.0bln | Mar-25
| Issuer | Mahmood Textile Mills Limited |
| Instrument | PPSTS-1 |
| Amount | PKR 3000 mln |
| Issuance Date | 18-Mar-25 |
| Tenor | 0.6 Years |
| Redemption Date | 18-Sep-25 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (16-Dec-25 ) |
Previous (02-May-25 ) |
|
| Action | Redeem | Initial |
| Long Term | - | A- |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
The Company issued a Rated, Secured, Privately Placed, Short-Term Sukuk amounting to PKR 3,000mln in March 2025. The tenor of the instrument was 6 months. It carried a profit rate of 6MK+0.75%. The instrument has been repaid, and hence redeemed. The Company has paid in full all markup profits and the outstanding principal amount. The Sukuk was redeemed in September 2025.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Mahmood Textile Mills Limited | PPSTS | PKR 3.0bln | Mar-25.
About
the Entity
MTML, the flagship Company of the “Mahmood Group” was incorporated in 1970. It is a family-owned business primarily engaged in the production and sale of yarn, grey cloth, and garments. It is listed on the Pakistan Stock Exchange.
About
the Instrument
MTML issued a Rated, Secured, Privately Placed, Short-Term Sukuk, carrying a markup of 6MK+0.75% with a tenor of 6 months. Its purpose was to finance the working capital requirements. The Sukuk included a call option feature, allowing the Company to prepay the entire outstanding amount by providing a seven-day prior notice to the Investment agent.