Press Release

JCR-VIS Reaffirms Ratings of Shahmurad Sugar Mills Ltd

Karachi, August 30, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Shahmurad Sugar Mills Limited (SSML) at ‘BBB+/A-2’ (Triple B Plus/ A-Two). Outlook on the ratings is ‘Stable’.

SSML is involved in the production of sugar as well as ethanol. Ratings take into account the fairly diversified operations of the company with both divisions having different market dynamics. With excess sugar production during the on-going season, sugar prices remain under pressure, resulting in lower margins. However with increase in international oil prices, the company enjoyed higher margins on ethanol and is expected to continue to gain from the same.

Debt leverage of the company is considered to be on the higher side. There may be some stress on debt servicing coverage. Future price trends for impact on cash flows of the company will continue to be closely tracked by JCR-VIS.
For further information on this rating announcement, please contact the undersigned (Ext: 408) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 (10 lines) or fax to 021-35311873.



Jamal Abbas Zaidi
Deputy 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 August 30, 2012 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.