Press Release

JCR-VIS Assigns preliminary TFC Rating of A with a Stable Outlook to JDW Sugar Mills Ltd

Karachi, June 5, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned a preliminary medium to long term TFC rating of ‘A’ (Single ‘A’) to the proposed privately placed TFC issue of Rs. 1.7b of JDW Sugar Mills Limited. Outlook on the assigned rating is ‘Stable’.

The tenor of the instruments will be 6 years, inclusive of a grace period of 1.5 years. Principal repayment will be in 18 unequal quarterly installments, commencing from the twenty first month of drawdown. Repayments falling during the crushing season (March and December) will be of Rs. 113.33m each while payments in the off-season (June & September) will be of Rs. 75.55m each. The bond will be secured by pari passu hypothecation charge over all present and future fixed assets of JDW Sugar Mills Limited (JDWSML) and United Sugar Mills Limited (USML) along with 25% margin in addition to which first pari passu mortgage over land and building of JDWSML and USML will also be provided along with 25% margin. The security package also includes personal guarantees of sponsor directors of the company. In the absence of NOCs, disbursement will be made on a ranking charge which will be upgraded to pari passu within 90 days of first drawdown. In lieu of this, ratings will be finalized once the ranking charge has been upgraded to pari passu charge.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 (10 lines) or fax to 5311873.

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