Press Release

JCR-VIS Revises Entity Rating of Grays Leasing Limited

Karachi, September 8, 2011: JCR-VIS Credit Rating Company Limited has revised the medium to long term entity rating of Grays Leasing Limited (GLL) from ‘BB’ (Double B) to ‘BB-’ (Double B Minus), while short term rating has been maintained at ‘B’ (Single B). Outlook on the rating continues to be ‘Negative’.

Amidst weakening macro-economic environment and slow recovery from leases, leasing operations of the company continue to be suspended. Resultantly, the lease portfolio and related revenues have witnessed a significant decline. The current level of infection in the portfolio is substantial and needs to be addressed to improve the risk profile of the company. Funds generated from recoveries and sale of immovable properties have been utilized to service obligations so far, resulting in a significant reduction in outstanding borrowings. While outstanding borrowings are likely to be paid, the ability of the company to meet these obligations in a timely manner may be constrained, on account of liquidity pressures.

Meanwhile, the company has rationalized operational expenditures; however further expense control may be warranted to reduce operating losses. Accretion of losses over the last three years has resulted in equity falling short of minimum regulatory requirement for carrying out leasing business. Given the funding constraints faced by the sector, equity injection is required to allow the company to recover business and continue as a going concern.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 or fax to 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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .