Press Release

JCR-VIS Reaffirms Entity Ratings of Pak-Gulf Leasing Company Limited

Karachi, February 25, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak-Gulf Leasing Company Limited (PGL) at ‘BBB-/A-3’ (Triple B Minus/A-Three). Outlook on the ratings is ‘Stable’.

The company’s lease portfolio has consistently declined over the last three and a half years. The weakening macroeconomic indicators have heightened credit risk, which has limited the growth prospects of financial institutions in the near to medium term. However, business activity at PGL has picked up recently and as per the management, portfolio quality indicators that had shown weakening over the last few reporting periods, have improved with the increase in recoveries. A rights issue of Rs. 60 million has allowed the company to meet the regulatory capital requirement for FY09. The decline in financial expenses attributable to low volume of borrowings and reduction in operating expenses, has improved the profitability of the company.

The company has exhibited positive trends in a weakening economy; however the operating environment remains challenging for financial institutions. JCR-VIS will continue to actively track the company’s developing financial trends and keep investors informed accordingly.

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 5311872-3.



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