JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial medium to long term entity rating of A- (Single A Minus) and short-term rating of A-2 (A-Two) to JDW Sugar Mills Limited (JDW). Outlook on the medium to long term rating is Stable.

The assigned ratings take into account the consistently high sucrose recovery rates and the managements focus on supply side dynamics. JDW has nurtured relationship with farmers through timely payment of dues, encouraging sugarcane cultivation in the coming years. Furthermore, associated corporate farms are expected to provide almost one-third of the raw material over the long term, while currently almost 20% of the sugarcane procured is coming from these. The company has a core team of professionals responsible for technical and financial management.

During the last two years, the company leveraged itself to make acquisitions, which had placed a strain on cash flows. JDW has two subsidiaries and the combined produce of the three plants positions the group as one of the largest sugar producing concern. Ratings of JDW take into account the sponsors plan to merge the subsidiaries with JDW, bringing in considerable economies of scale. Pricing power remains limited with producers in the local context, though the export market provides an alternative avenue.

Results of all three plants in the current season have been encouraging. Ratings incorporate the expected improvement in cash flow coverages and profitability position of the company. Debt levels are projected to decline going forward while the company is also considering re-profiling of existing long term debt. Accumulation of liquid reserves on balance sheet can mitigate any cash flow stress.

JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the rating of Rozgar Microfinance Bank Limited (RMBL) at BB+/A-3 (Double B Plus / A-Three). Outlook on the ratings has been revised from Stable to Negative.

The revision in outlook comes as a result of losses encountered in 2007. The increase in non-performing loans (NPLs) witnessed during the year has caused an increase in provisioning requirements, and a slowdown in disbursements in contrast to the projected numbers. However, pace of recovery and loan booking has considerably increased during the last two quarters. JCR-VIS will closely watch these trends for future improvement. In case, of reversal or continuing stress on equity, ratings may be revised downwards.

JCR-VIS Credit Rating Co Ltd. believes that the banks performance thus far has also been adversely affected by the high staff turnover. We will continue to monitor developments in this regard.

JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Management Quality rating of AM3- (AM Three Minus) to National Asset Management Company Limited (NAMCO).