Press Release

JCR-VIS Reaffirms Ratings of Jamshoro Joint Venture Limited

Karachi, December 28, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long term entity rating of Jamshoro Joint Venture Limited (JJVL) at ‘A+’ (Single A Plus) and short-term entity rating at ‘A-1’ (A-One). Outlook on the medium to long-term rating is ‘Stable’.

The ratings take into account JJVL’s position as one of the largest producers of Liquefied Petroleum Gas (LPG) having significant market share in the industry. Over the years, the company has exhibited consistent growth in net sales while posting healthy margins. In FY10, gross margins were notably higher amid rising trend in LPG prices that resulted in considerably improved internal cash generation. There is a considerable proportion of non-earning assets on books that may take some time to yield return. However, the company has adequate inherent capacity to sustain strong debt coverage from core operations.

JJVL is in the process of repaying its current debt. The decline in the level of borrowings vis-à-vis strong operational cash flows has, therefore, strengthened its risk profile. Other related projects, once online, would magnify the revenue base of the company. The implementation of the new MIS would also help in enhancing the organizational control and efficiency.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (sabeen@jcrvis.com.pk) at 92-21-35311861-70 or Mr. Maimoon Rasheed (maimoon@jcrvis.com.pk) at 92-42-36610863 or fax to 92-21-5311873.



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 December 28, 2010 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.