Press Release

JCR-VIS revises Rating of Sukuk Issues of Eden Housing Limited (EHL)

Karachi, November 6, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reviewed the rating assigned to EHL’s Sukuk Issues. In our view, the recent economic turmoil in the country has negatively affected the disposable income and in turn, the housing industry. The management of EHL has acted accordingly by providing relief to investors through rescheduling of installments. While this action would release payment pressure on investors as installments have been delayed from 3 years to 5, 7 and 10 years, the company’s cash flows have slowed down.

JCR-VIS has also taken note of the sponsor’s accentuated stance to ensure timely payment of principal and profit to sukuk holders by mobilizing adequate liquidity for the purpose. However, in the current demanding economic environment the company may face severe challenges in mobilizing sufficient liquidity that could alleviate pressure on the repayment capacity of EHL.

In this scenario, JCR-VIS has revised the instrument rating of EHL’s Sukuk Issues of Rs. 1.63 billion and Rs. 0.73 billion from ‘A’ (Single A) to ‘BBB+’ (Triple B Plus) with ‘Negative’ outlook. JCR-VIS will closely monitor further developments particularly evaluation of future cash flows of the company. Any concrete steps taken by the company to overcome the stressed situation including disposing off its land bank for future projects, as and when needed, may lead to rating adjustments.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) at 021-35311861-71 or Mr. Maimoon Rasheed at 042-36610681-83-84 or fax to 021-35311872-3.

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 .