Press Release

JCR-VIS Revises Outlook from ‘Negative’ to ‘Stable’ of Ittehad Chemicals Ltd

Karachi, August 20, 2007: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has revised the outlook from ‘Negative’ to ‘Stable’ on the medium to long-term entity and TFC ratings assigned to Ittehad Chemicals Limited (ICL) of A- (Single A-) and A (Single A) respectively. The short-term entity rating has been maintained at A-2 (A Two).

The revision in outlook is in view of the improved risk profile of the company as the results of the aggressive expansion undertaken during FY2005-06 have become visible in the shape of both higher sales as well as substantially improved margins as a consequence of the relatively cost effective technology used in the expansion and the lower power cost being incurred on the own power generation. In addition, the Rs 1.1 bn Islamic Finance Facility raised recently by the company will enable it to significantly improve the matching of future debt maturities with its expected cash flow streams.

The management’s focus to consolidate the operations now and reduce the overall debt burden on the company before considering any other major capital expenditure plan has been given due weight in the ratings. Further, JCR-VIS will evaluate the beneficial impact on cashflows of the anticipated increase in sales to ICL’s subsidiary when it starts commercial operations.

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

Faheem Ahmad
President & CE

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 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