Press Release

JCR-VIS Revises Entity Ratings of Shaheen Air International Limited

Karachi, June 07, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the entity ratings of Shaheen Air International Limited (SAI) from ‘A-/A-2’ (Single A Minus/ A-Two) to ‘BBB/A-3’ (Triple B/ A- Three). Outlook on the assigned ratings continues to be ‘Negative’. Previous rating action was announced on March 1, 2018.

Revision in ratings incorporates continuity of losses in the ongoing year primarily on account of higher fuel prices and rupee depreciation. SAI had incurred a sizeable loss in FY17 due to delays in permission from regulator to increase frequency on existing routes and losses incurred on selected routes. Given the trend in losses, liquidity profile and capitalization indicators have continued to weaken on a timeline basis and are no longer commensurate with the previously assigned ratings. Going forward, continuity of trend in losses may result in further pressure on the assigned ratings. JCR-VIS will also continue to monitor level of borrowings mobilized and its impact on profitability and capitalization indicators.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 92-21-35311861-70 or fax to 92-21-35311873.

Javed Callea

Applicable Rating Criteria: Industrial Corporates (May 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 2018 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