Press Release

JCR-VIS reaffirms entity ratings of First Paramount Modaraba at BBB-/A-3 with Stable Outlook

Karachi, July 17, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of First Paramount Modaraba (FPM) at ‘BBB-/A-3’ (Triple B Minus/A-Three). Outlook on the ratings is ‘Stable’.

Rising inflation and increasing benchmark rates have negatively affected the credit risk profile of companies across the economy. This has put increasing pressure on secondary market borrowers whose ability to transfer rising cost of funds to clients is limited. Trends in portfolio quality indicators will need to be closely monitored going forward.

Ratings take into account improvement in portfolio quality of FPM. While CNG operations have so far been the major focus of operations the modaraba is diversifying towards new business lines. Performance of the modaraba in these new business lines has yet to be seen.

Over the years there has been phenomenal growth in the financial sector. Significant increase in size and scope of operations will be essential for improvement in the modaraba’s risk profile.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 5311861-70 or fax to 5311872-3.

Safdar Kazi

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2008 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited