Press Release

JCR-VIS reaffirms the ratings of First Paramount Modaraba

Karachi, December 31, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of First Paramount Modaraba (FPM) at ‘BBB/A-3’ (Triple B/A-Three). Outlook on the assigned ratings is ‘Positive’. The previous rating action was announced on December 26, 2014.

Ratings take into account the conservative risk profile of the Modaraba with gradual increase in equity levels over the years through internal profit generation and right shares issuances. Given sizeable increase in liabilities, liquidity position of the company further weakened. Leverage indicators continue to remain within manageable limits; albeit increasing on a timeline basis.

The company utilizes Certificates of Musharakah (CoMs) as its primary funding source. Given relatively lower rates vis-à-vis secondary market borrowings, management continued to focus on mobilizing short-term CoMs. Financing portfolio of the company depicted growth largely on account of higher Musharakah financing in the outgoing year; nonetheless business risk emanating from the same remains a key rating factor.

Profitability declined for a third consecutive year in FY15, on account of investment in Musharakah projects, returns from which are expected to emanate in future periods. Sustainability and growth in earnings are now largely dependent on quality of the financing portfolio.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at 021-35311861-71 or fax to 021-35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Modaraba Rating Scale (October 2002)

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