Press Release

JCR-VIS Revises Entity and TFC Ratings of Saudi Pak Leasing Company

Karachi, January 7, 2010: JCR-VIS Credit Rating Company Limited has revised the entity rating of Saudi Pak Leasing Company Limited (SPLC) to ‘BB+/B’ (Double B Plus/Single B) from ‘BBB-/A-3’ (Triple B Minus/A-Three).

The economic downturn experienced over the last two years has affected asset quality across the financial sector as borrowers faced increased financing cost, an energy crisis and a global recession. The NBFCs sector posted a considerable increase in non-performing assets, along with reduced asset values in the capital markets, and was also faced with compromised access to liquidity. Financial risk indicators of SPLC have also weakened further with declining recovery rates and erosion on equity holdings having resulted in losses during FY09 and 1QFY10.

The rating of the outstanding TFC issue of SPLC has also been revised. The TFC is secured by way of charge on specific lease assets whereby a curing mechanism was instated to maintain the quality of collateral. Given the high level of infection in the overall portfolio, the charge of TFC holders may have weakened. In view of this, the TFC rating has been revised from ‘BBB’ (Triple B) to ‘BB+’ (Double B Plus). Outlook on the ratings is ‘Negative’.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 92-21-35311861-70 or fax to 92-21-35311873.


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 .