Press Release

JCR-VIS Reaffirms Ratings of JDW Sugar Mills Limited

Karachi, June 30, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of JDW Sugar Mills Limited (JDW) at ‘A-/A-2’ (Single A Minus / A-Two) and the rating of the company’s Rs. 1.7b TFC issue at ‘A’ (Single A). Outlook on these ratings is ‘Stable’.

The ratings reflect JDW’s unique position in the sugar industry emanating from its association with a backward integrated group leading to synergic benefits. The company is strategically located in the vicinity of related corporate farms and otherwise also in the heart of the sugarcane cultivation zone. The company has benefited from these facts, which is evident from its strong performance over the years. At the same time, while emphasizing on supply side dynamics, the company has been able to maintain consistently high sucrose recovery rates (FY2008: 10.16%, FY2007: 10.35%) despite crop damage due to frost during FY08. Currently, the associated corporate farms provide about 20% of the sugarcane, which is likely to increase as the group is securing more land for cultivation.
The management plans to consolidate the company’s operations while merging with United Sugar Mills Limited, a subsidiary company. While maintaining healthy cash flows, this is likely to help in reducing the company’s gearing levels. Meanwhile, in order to mitigate risk at the group level, the sponsors intend to diversify in other business areas.
For further information on this rating announcement, please contact the undersigned ( or Ms. Sobia Maqbool ( at 5311861-70 (10 lines) or fax to 5311873.

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 2009 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