Press Release
JCR-VIS revises Ratings of Sukuk Issues of Eden Housing Limited
Karachi, January 27, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reviewed the ratings assigned to EHL’s Sukuk issues. The continuing constraints on cash flow generation capacity have further stressed the liquidity profile of the company exerting pressure on its repayment ability.
JCR-VIS has revised the instrument rating of EHL’s sukuk issue of Rs. 1.63 billion from ‘BBB+’ to ‘D’ on account of delay in coupon payment due on December 31, 2009 and following lapse of the grace period; however, EHL has provided the trustee with post dated cheques dated February 15, 2009. JCR-VIS has also revised the instrument rating of the Sukuk issue of Rs. 0.73 billion from ‘BBB+’ to ‘CC’ with a ‘Negative’ Outlook on account of reduced likelihood of timely payment against the issue.
Ratings may be revisited if and when any plans for restructuring the company’s debt obligations materialize. At the same time, however, EHL possesses significant land bank for future projects, disposal of which can alleviate the pressure on the repayment capacity of the company.
For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) at 021-35311861-71 or Mr. Maimoon Rasheed at 042-36610681-83-84 or fax to 021-35311872-3.
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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .