Press Release

JCR-VIS Reaffirms Ratings of Jamshoro Joint Venture Limited

Karachi, April 09, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long term entity rating of Jamshoro Joint Venture Limited (JJVL) as A+ (Single A Plus) and short-term entity ratings as A-1 (A One). The medium to long-term secured debt rating has also been reaffirmed as AA- (Double A Minus). The outlook on the medium to long-term ratings is ‘Stable’.

The reaffirmation of the ratings takes into account the consistent operational performance and improving profitability of the company. The sales price, after taking into account the recent reduction in prices, is still on the higher side in comparison to earlier price estimates, thus supplementing cash flows and profitability. The expansion of the extraction facility has been delayed due to operational reasons; however, according to the management it will be online by the end of the current calendar year. The company is not expected to face any debt servicing pressures even with the delay in the ongoing expansion, as the existing plant is generating sufficient cash flows to service the overall debt. Moreover, the profitability of the company will be enhanced further once the new facility becomes operational.

JCR-VIS has noted with concern the potential change in the risk profile of JJVL. The company has modified its business plans to utilize surplus funds for investments in other group ventures in the energy sector, as the management believes that these investments will bear good returns. Moreover, a lawsuit has been filed by some shareholders of Sui Southern Gas Company Limited (SSGC) challenging the right of JJVL to extract LPG from the gas supplied by SSGC. However, the management is confident that on merit and on the basis of grounds of appeal the case will be dismissed.

For further information on this rating announcement, please contact Mr. Safdar Kazi ( or Mr. Mansur Ali Shah ( 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 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