Press Release

JCR-VIS Assigns Entity Ratings to International Brands Limited

Karachi, July 19, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of A/A-2 (Single A/ A-Two) to International Brands Limited (IBL). The outlook on the assigned ratings is ‘Stable’.

IBL operates under a holding company structure and has investments in a number of companies from different sectors including pharmaceuticals, food franchising, agrochemical, fertilizers, marketing, distribution and retail. Largest investment on balance sheet is in The Searle Company Limited (Searle) shares representing around two-third of total investments. Searle is a prominent player in the pharmaceutical sector and has strong financial & business risk profile which is a key rating driver.

Entity ratings assigned reflect current and projected capital structure, quantum of cash flows in relation to outstanding obligations alongwith support to cash flows from the fall back convertibility feature in the Sukuk proposed to be issued by IBL. Dividend income from subsidiaries has grown on a timeline basis and is projected to remain sufficient for repayment of existing debt on balance sheet. The ratings also draw comfort from the projected debt leverage of IBL not exceeding beyond the existing level of debt (Rs. 1billion) plus projected Sukuk (Rs. 4billion).

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 021-35311861-70 or fax to 021-35311873.

Javed Callea

Applicable Rating Criteria: Rating the Issue (June 2016)

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 2017 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