Press Release

JCR-VIS Revises Entity Ratings of Saudi Pak Leasing Company Limited to BBB-/A-3 from BBB/A-3

Karachi, May 18, 2009: JCR-VIS Credit Rating Company Limited has revised the entity rating of Saudi Pak Leasing Company Limited (SPLC) to ‘BBB-/A-3’ (Triple B Minus/A-Three) from ‘BBB/A-3’ (Triple B /A-Three). Rating on the outstanding TFC issue has also been revised to ‘BBB’ (Triple B).

The company has not been able to keep itself immune from happenings at the macro level and the NBFCs sector continues to face severe liquidity crunch. The financial sector has also been faced with increased level of delinquencies in the face of increased cost of doing business and high interest rates.

Within this context, financial risk indicators of SPLC including debt leverage, current ratio and quantum of un-provided NPLs vis-à-vis capital have continued to deteriorate over time. Capital market losses have also contributed to erosion in capital.

Ratings continue to be placed under ‘Rating Watch-Developing’ status in view of the on-going merger negotiations with Emirates Global Islamic Bank Limited. Ratings may be faced with further downward pressure if the company is not recapitalized within a very short time period.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311873.



Syed Ziauddin Ahmed
Advisor

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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .