Press Release

JCR-VIS Maintains Ratings of Grays Leasing Limited at BBB+/A-2

Karachi, January 3, 2008: JCR-VIS Credit Rating Company Limited has maintained the ratings of Grays Leasing Limited (GLL) at ‘BBB+/A-2’ (Triple B Plus / A-Two). The preliminary rating of proposed TFC issue has also been maintained at ‘A-’ (Single A Minus).

Growth in lease portfolio of GLL has been inhibited on account of efforts to curtail exposures in some of the more risky segments of the economy. However, as has been the case with a number of industry participants, non-performing exposures have registered an inclining trend. On account of weakening in portfolio quality indicators, Outlook on the ratings has been revised from ‘Stable’ to ‘Negative’. JCR-VIS will closely monitor future trends in this respect.

A secured and listed TFC issue is expected to be floated soon. The first tranche of the TFC issue amounting to Rs. 500m (including a green shoe option of Rs. 100m) has a tenor of 5 years. The instrument is priced at 6- Month KIBOR + 250bps. The TFC issue is secured against first pari-passu charge on all present and future assets of GLL. The pre-IPO amount of Rs. 220m has already been received.

While leverage has remained low, the company may benefit from a larger capital base. The new NBFCs rules also call for enhancement of equity of leasing companies, which may require external capital injection. Plans in this respect have yet to be finalized.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 408) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311872-3.



Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2008 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .