Press Release

JCR-VIS upgrades Ratings of Jamshoro Joint Venture Limited

Karachi, April 24, 2007: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the medium to long term entity rating of Jamshoro Joint Venture Limited (JJVL) from A (Single A) to A+ (Single A Plus) and short-term entity ratings from A-2 (A Two) to A-1 (A One). The medium to long-term secured debt rating has also been upgraded from A+ (Single A Plus) to AA- (Double A Minus). The outlook on the medium to long-term ratings is ‘Stable’.

The ratings are based on the healthy cash flows generated by the company during FY2006, the first full year of operation of the plant, and the relatively inelastic nature of the demand for the company’s main product, Liquefied Petroleum Gas (LPG). JJVL is the single largest LPG producer in the country and with the recent linkage of local LPG prices with international prices, future revenue streams are expected to be further strengthened.

Based on the success of this initial venture, the company has planned addition of a new LPG extraction plant at the existing plant site in order to enhance capacity by a further 50% which will further boost the cashflows of the company. This expansion will involve a total capital outlay of Rs. 2.5b out of which 20% will be funded from the company’s own resources.

For further information on this rating announcement, please contact Mr. Safdar Kazi ( or Mr. Saad Ahmed Madani ( at 5311861 or fax to 5311873.

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 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 2007 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