Press Release

Ratings of TFC issue of Avari Hotels Limited

Karachi, March 17, 2011: On February 26, 2010, JCR-VIS Credit Rating Company Limited (JCR-VIS) had placed the outstanding rating of TFC-I issue of Rs. 3.146b of Avari Hotels Limited (AHL) of ‘A-’ (Single A Minus) under ‘Rating Watch - Developing’ status.

In the recent developments reported by AHL the management has decided to delink the Islamabad Hotel project from the scope of the outstanding TFC and pursue it from sponsors’ other sources. In the meanwhile AHL has paid six installments (including redemption of two installments of principal in addition to interest payments), as due and are current on their payments. The security structure and repayment schedule of the outstanding TFC amount of Rs. 2.671b is accordingly being re-negotiated with the TFC holders, within the original tenor which remains unchanged, to align it with the cash flow streams of AHL’s Karachi and Lahore Hotels. In view of this, the TFC rating of ‘A-’ (Single A Minus) continues to be placed under Rating Watch-Developing status.
Meanwhile, as the company has decided not to pursue the option of the proposed PPTFC issue of Rs 7.350 billion, the ‘A+’ preliminary rating assigned on May 26, 2010 has been withdrawn with immediate effect.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501 / javed.callea@jcrvis.com.pk ) or Ms. Sabeen Saleem (Ext: 510 / sabeen@jcrvis.com.pk ) at 021-35311861-70 or fax to 021-35311872-3.



Faheem Ahmed
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 March 17, 2011 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.