VIS reaffirms ratings of Javedan Corporation Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- August 27, 2019 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

Quote

VIS Credit Rating Company Limited (VIS) has reaffirmed the entity rating of Javedan Corporation Limited (JCL) at 'A+'/A-1 (Single A Plus/A-One). Ratings assigned to Sukuk have also been finalized at AA- (Double A Minus). The assigned ratings to the Sukuk incorporate strong debt servicing ability and structural features of the Sukuk. Long term entity rating of 'A+' denotes good credit quality and adequate protection factors; risk factors may vary with possible changes in the economy. The short term rating of 'A-1' signifies high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings is 'Stable'.

JCL is in the process of development of housing scheme by the name of "Naya Nazimabad" (NN). The target market of NN are progressive middle and upper-middle class segment of the society. The project is spread over 1,366 acres of land and includes bungalows, open plots, flat/apartments and commercial sites, malls, shopping centers etc. The first phase of NN was launched in the year 2011 which was spread over 513 acres of land and subsequently launched 78 acres in 2015.

Major portion of inventory of Phase-1 has been sold. Further limited portion of area in Phase II of the project were sold during 9MFY19. Going forward, the Company also plans to launch a portion of the Commercial Area during the first half of the ongoing fiscal year. The Commercial Area will have apartment/flat and commercial sites including retail markets.

The assigned ratings to JCL reflect moderate business risk, strong financial risk profile of the company and implicit support of the company's majority shareholder, Arif Habib Group. Assessment of business risk profile take into account strong brand name...