Press Release

JCR-VIS reaffirms entity ratings of Kashf Foundation at BBB+/A-3 with a Stable Outlook

Karachi, April 3, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Kashf Foundation at ‘BBB+/A-3’ (Triple B Plus/A-Three). JCR-VIS has also reaffirmed the rating of outstanding secured and privately placed TFCs at ‘A’ (Single A). Outlook on the ratings is ‘Stable’.

In the outgoing year, the foundation has embarked upon an aggressive, growth-oriented financial plan, while maintaining sound asset quality indicators. Funding sources have been diversified with the issue of a privately placed TFC over the last year. Additional long term funding is also being raised to support the growth in loan portfolio, with debt leverage projected to be maintained at under 5x over the rating horizon. Analyzing cost of doing business on a per unit basis indicates an improvement in profitability indicators over time.

Maintaining controls and asset quality against the backdrop of rapid growth would be critical to sustain ratings though JCR-VIS believes that the institution is well poised to take upon this challenge in view of its tested lending methodology and tailor-made software which ensures effective monitoring.

The foundation has extended geographical outreach by venturing into the province of Sindh. Credit cultures are unique across provinces on account of differences in entrepreneurial activity, economic profile, etc. While the amount of portfolio stemming from branches in Sindh is still small, asset quality indicators within this geographical segment will be keenly monitored as the size of this portfolio increases.

For further information on this rating announcement, please contact Mr. Safdar Kazi or Ms. Sobia Maqbool (Ext: 506) at 5311861-71 or fax to 5311872-3.

Faheem Ahmad
President & CEO

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 2008 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