KARACHI: JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of triple B Plus/A-Two to Premium Textile Mills Limited.

The outlook on the assigned ratings is stable, said press release on Thursday.

PTML began operations in 1989 and is involved in the production of dyed yarn and leather products. The company started spinning operations with 12,230 spindles, over the years the spindle count has increased to around 77,000 with production of approximately 20 million kilograms of yarn annually.

Ratings assigned to PTML take into account the company's established track record in the textile spinning industry, improving profitability profile and adequate liquidity indicators.

However, ratings are constrained by cyclicality in earnings profile and high leverage indicators.