Press Release
JCR-VIS Places Rating of the Sukuk Issue of Quetta Textile Mills Ltd. under Rating Watch – Developing Status
Karachi, March 09, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) had assigned medium-to-long-term rating of ‘A-’ (Single A minus) to the Rs.1.385 billion Sukuk issue of Quetta Textile Mills Limited (QTML) in September 2008.
The rating assigned to the Sukuk issue entailed a corporate guarantee of Rs. 200m from at least an ‘A’ rated financial institution. The rating of the present guarantor, First Dawood Investment Bank Limited (not rated by JCR-VIS), has fallen five notches in only two months time and is currently below this level, making the security structure weak. In view of this, JCR-VIS has placed the rating of sukuk issue under ‘Rating Watch-Developing’ status. The management of QTML has initiated the process for replacing the guarantor. Meanwhile, the latest financial position of the company, and expected trends over the next few reporting periods are also being assessed and any resultant impact on the ratings will be communicated to the investors.
For further information on this rating announcement, please contact Mr. Safdar Kazi (safdar@jcrvis.com.pk) or Ms. Sabeen Saleem (sabeen@jcrvis.com.pk) at 021-5311861 or fax to 021-5311873.
Faheem Ahmad
President & CEO