Press Release

JCR-VIS Reaffirms Ratings of BBB-/A-3 of MIMA Leather (Pvt.) Ltd.

Karachi, December 11, 2006: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the medium to long-term entity rating of BBB- (Triple B Minus) and short-term rating of A-3 (A Three) assigned to MIMA Leather (Pvt.) Ltd. (MIMA). The outlook on the medium to long-term rating is “Stable”.
The ratings basically takes into account the position of the MIMA group as one of the leading leather exporters from Pakistan as well as the absence of long-term debt in conjunction with the fact that there appears to be no requirement to raise funding for any significant capital expenditure in the foreseeable future. This is complemented by the demonstrated liquidity support available to MIMA from other group companies. Therefore, although the company incurred a slight loss in FY2006 on account of reduced sale of intermediate products and rising financial charges, JCR-VIS is of the opinion that this is in keeping with the overall cyclical behavior of the leather industry, which had been factored into the original rating. The main risk factors that require monitoring are the inventory levels and the consequent dependence on short-term borrowings to finance working capital requirements.
For further information on this rating announcement, please contact Mr. Safdar Kazi ( / Ext: 221) or Mr. Saad Ahmed Madani ( / ext: 219) at 5671822/5671833/5680996 or fax to 5681105/5671600.

Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited 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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2006 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited