Press Release

JCR-VIS Re-affirms Entity Ratings of Indus Dyeing & Manufacturing Co. Ltd. at A/A-2

Karachi, January 03, 2007: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the medium to long-term entity rating of A (Single A) and short-term rating of A-2 (A Two) assigned to Indus Dyeing & Manufacturing Company Ltd. (IDMCL). The outlook on the medium to long-term rating is ‘Stable’.

The ratings take into account the company’s demonstrated ability to generate strong cash flows due to above-average operating profitability as compared to the rest of the spinning sector, allowing it to maintain a slightly more aggressive leverage posture than would be usual for other companies from the spinning sector in the same rating range. The sponsors of the company have maintained a considered approach towards expansion both at the company and group levels, keeping in view the inherent cyclicality of the textile sector, in order to ensure that any growth achieved is sustainable. The company has also recently made significant investment in a joint venture home textile manufacturing unit along with a leading US company.

For further information on this rating announcement, please contact Mr. Safdar Kazi (safdar@jcrvis.com.pk / Ext: 221) or Mr. Saad Ahmed Madani (saad@jcrvis.com.pk / Ext: 219) at 5671822/5671833/5680996 or fax to 5681105/5671600.


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 January 03, 2007 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.