Press Release

JCR-VIS Reaffirms Entity Ratings of Saudi Pak Leasing Company Limited at A-/A-2

Karachi, January 10, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long-term entity rating of Saudi-Pak Leasing Company Limited (SPLC) at ‘A-’ (Single A Minus) and short-term rating at ‘A-2’ (A-Two). Rating of the proposed TFC issue has also been reaffirmed at ‘A’ (Single A). Outlook on the ratings is ‘Stable’.

Growth in assets has been slow over the last year while the quality of outstanding financing portfolio has also witnessed deterioration. Combined with a sizeable stock market exposure and high debt leverage, SPLC’s risk profile is showing signs of weakening. The sponsors have however indicated their intention to inject capital into the company beyond the minimum regulatory requirement to improve its risk profile while the management is also committed to reduce the outstanding non-performing exposures.

Liquidity indicators appeared stressed, though reliance on short term funding sources is on a decreasing trend and proposed TFC issue is also likely to improve the matching of assets and liabilities. Profitability indicators remained under pressure during FY07 as return on investment portfolio declined and markup spreads were also marginalized. While spreads have shown recovery during 1Q08, provisioning requirement against the infected portfolio and high debt leverage may continue to constrain profitability indicators, going forward.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 408) or Ms. Sobia Maqbool (Ext: 506) at 5311860-70 or fax to 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 2008 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .