Press Release

JCR-VIS Revises Ratings of Independent Media Corporation (Pvt.) Ltd.

Karachi, November 02, 2015: JCR-VIS Credit Rating Company Limited has revised TFC rating of Independent Media Corporation (Pvt.) Ltd. (IMCL) from ‘A-’ (Single A Minus) to ‘BBB-’ (Triple B Minus). Rating Watch -‘Negative’ status assigned to the ratings has been removed. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on September 17, 2014.

The assigned rating incorporates the weakening of the franchise strength of the entity where recouping of the lost market share in the highly competitive nature of the industry would entail tough challenges ahead. While some revenue stabilization has been exhibited in the recent months and cost heavy entertainment segment has been spun off with air time sale arrangements, the latter would also enhance business risk concentration. Despite the accumulation of losses and erosion of equity, the company has managed to make timely payments on debt obligations including those to TFC holders through support from group companies and debt service mechanism in place.

The entity ratings of IMCL have also been revised from ‘BBB+/A-3’ (Triple B Plus/A-Three) to ‘BB+/A-3’ (Double B Plus/A-Three) with a ‘Stable’ outlook. Group support is expected to the entity given the group’s overall presence and long experience in the media industry. Though challenging, the management expects cash flows to improve, going forward, and be sufficient for meeting future obligations.

For further information on this rating announcement, please contact the undersigned (Ext: 517) or Mr. Javed Callea (Ext: 501) at 92-21-35311861-70 or fax to 92-21-35311873.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Industrial Corporates (October 2003)

Rating The Issue (September 2014)

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 2015 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