Interloop retains ‘AA-/A1’ ratings with stable outlook

Mettis Global reported that VIS Credit Rating Company has confirmed Interloop Limited's entity ratings at AA-/A1 and kept the outlook at Stable. The long-term grade points to high credit quality, which the agency linked to robust safeguards and limited risk. The short-term grade, A1, suggests a firm chance that short-term debts will be repaid on time, helped by excellent liquidity.

VIS credited the company with a strong market position, a vertically integrated setup and steady revenue growth, alongside ongoing capacity additions and diversification into denim and apparel. Profitability came under pressure in FY25 as margins narrowed in apparel during scale-up, though it showed signs of recovery in the nine months to March 2026. Leverage rose in FY25 due to expansion-related capital spending, while capitalisation improved in 9MFY26 as large projects neared completion and debt eased.

External risks flagged by VIS include swings in global cotton prices and changes in US tariff policy. Interloop, a vertically integrated textile maker with hosiery, denim, knitwear, activewear and yarn lines, has a diversified export base and long-standing ties with large international retailers. It employs about 40,000 people across 15 nationalities and runs operations in Pakistan, Sri Lanka, China, the US, Europe and Japan. An earlier rating review was carried out on August 4, 2025.