Press Release

JCR-VIS Reaffirms Entity Ratings of Jamshoro Joint Venture Limited

Karachi, August 25, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long term entity rating of Jamshoro Joint Venture Limited (JJVL) at ‘A+’ (Single A Plus) and short-term entity rating at ‘A-1’ (A-One). Outlook on the medium to long-term rating is ‘Stable’.

The rating takes into account JJVL’s standing as one of the largest LPG producers in Pakistan. The company has a robust earnings profile built on strong margins and healthy cash flows. JJVL has maintained a sound capital structure over the years with strong debt coverages. While cash flow coverage had experienced some decline in FY08 on account of increased level of borrowings, debt coverages improved during FY09. Debt acquired for the existing plant has been completely paid off while the preference shares that were issued for the project have also been redeemed in full during June 2009.

In view of the strong financial profile of JJVL, it is now being used as a vehicle to finance other ventures in the power & energy sector. JJVL has made equity investments in a company in addition to which a loan facility has been extended to an associated concern, which is expected to be repaid over the next two years.

For further information on this rating announcement, please contact Mr. Safdar Kazi (safdar@jcrvis.com.pk) or Ms. Sobia Maqbool (sobia@jcrvis.com.pk) at 92-21-5311861 or fax to 92-21-5311873.


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