Microsoft word - converted final_report_yasmin_spinning as on 05-10-2010.doc

CREDIT RATING REPORT
Yasmin Spinning Mills Ltd.
REPORT: RR/482/10
This is a credit rating report as per the provisions of the Credit Rating Companies Rules 1996. CRISL’s entity rating is valid one year for long-term rating and 6 months for short term rating. CRISL’s Bank loan rating (blr) is valid one year Address:
for long term facilities and up to 365 days (according to tenure of short term facilities) for short term facilities. CRISL followed Corporate Rating Methodology published in CRISL website www.crislbd.com. Entity Rating
Outlook Stable
BANK FACILITY RATINGS:
Mode Of Exposure
(Figures in million)
Analysts:
Entity Rating:
Long Term: A+
Short Term: ST-3
Date of Rating
30 September 2010
Outlook: Stable
* CRISL rated the short tern facilities under long term rating scale in consideration of their revolving nature ** TLO-Term loan Outstanding YASMIN SPINNING
MILLS LTD.
RATIONALE
CRISL has assigned “A+” (pronounced as single A plus) rating in the Long Term and “ST-3” rating in the Short Term to Yasmin Spinning Mills Limited (hereinafter called “YSML” or “the PRINCIPAL ACTIVITY
company”) based on both relevant quantitative and qualitative information up to the date of rating. The above ratings have been assigned based on good fundamentals of the company such as sound production facilities, good solvency supported by the group, good quality control mechanism, in-house consumptions of the product etc. CRISL also takes into account, the good image of the Noman Group in the industry as well as sound credit profile of the INCORPORATED ON
group. However, the above fundamentals, to some extent, were constrained by High leverage ratio, long cash conversion cycle, inadequate IT infrastructure, absence of articulated inter company transfer policy as well as other industry specific and CHAIRMAN
Md. Nurul Islam
The long term rating implies that entities rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in MANAGING DIRECTOR
periods of economic stress than those rated in the higher categories. The short term rating indicates good certainty of timely payment. Liquidity factors and company fundamentals are EQUITY
sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small. TOTAL ASSETS
CRISL also placed the company with “Stable Outlook” in consideration of its existing fundamentals and steady business growth. CRISL also believes that the company will be able to keep the current business performance in foreseeable future. While assigning the Bank Loan Ratings (blr) CRISL takes into account, in addition to entity profile, the security arrangements which include nature and value of securities against financial facilities control of bank over securities and other related issues. In view of above, CRISL assigned bank loans ratings at par to the entity ratings.

Source: http://www.crislbd.com/rating-reports/482_1.pdf