VIS maintains J.K Spinning Mills' long-term rating at 'A-'

According to Mettis Global, VIS Credit Rating Company has affirmed the entity ratings of J.K Spinning Mills at 'A-/A1' with a Stable outlook. The long-term 'A-' grade signals good credit quality and adequate protection, although the agency notes that risks can shift as economic conditions change. The short-term 'A1' grade points to a strong ability to repay short-term debts on time, backed by excellent liquidity.

The agency ties the ratings to the company's integrated model spanning spinning, weaving and processing, along with solid plant use in every segment. It also cites a growing share of exports, a wider customer base, moderate capitalisation, adequate liquidity and satisfactory debt servicing. Profitability rebounded in FY26 as gross margins improved on a more favourable product mix and cost savings, while lower finance costs lifted the bottom line.

Ongoing BMR work, greater in-house use of spinning capacity and a larger solar power installation are expected to raise operational and cost efficiency further, according to the agency. J.K Spinning Mills is a listed textile firm based in Faisalabad and belongs to the JK Group, which also operates in power, food and technology.