Press Release

JCR-VIS Maintains Entity Ratings of Mima Leather (Pvt.) Ltd.

Karachi, January 08, 2008: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has maintained 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 being revised from ‘Stable’ to ‘Negative’.

The outlook has been revised based on the stress on cashflows arising due to the rising interest rate scenario while the company is still in the process of rationalizing the inventory to the desired levels so that short-term borrowing levels and the related cost can be curtailed.

Meanwhile, the ratings recognize MIMA group as one of the leading leather exporters of Pakistan. Due to excess capacity in the sector, the management does not foresee any expansion requirement towards the tannery side. The focus is shifting to venture more into value-addition so as to boost sales growth, which have otherwise become nearly stagnant, as well as improve margins. We are tracking the management’s plans in this regard as well as the improvement in financial position once the plan to reduce inventory levels has been successfully implemented.

JCR-VIS is further monitoring the impact of the current political and law and order situation of the country and rating actions will be updated as and when required.

For further information on this rating announcement, please contact Mr. Safdar Kazi ( or Ms. Sadaf Aliuddin ( at 021-5311861-71 (11 lines) or fax to 021-5311872-73.

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 2008 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