JCR-VIS Credit Rating Company Limited has assigned preliminary Fund Stability Rating (FSR) of AA+(f) (Double A Plus (f)) to UBL Liquidity Plus Fund (ULPF), to be launched by UBL Fund Managers Limited. The ratings will be finalized following a review of the final trust deed and offering document. ULPF has been structured as an open end money market scheme with the objective of investing in low risk instruments while maintaining high liquidity. At least 60% of the assets of the fund will be deployed in short term government paper while remaining exposure will be taken in counterparties with issue or issuer ratings of at least AA.

The remaining maturity of any exposure may not exceed 6 months while the weighted average time of maturity of the scheme will be 90 days.

The fund is primarily targeted at corporates which may result in a concentrated unit holding pattern over the medium term. Maintaining liquidity would be crucial in the context of the targeted investor base of the fund.

JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Sapphire Textile Mills Ltd. (STML) at A (Single A) for the medium to long-term and A-2 (A Two) for the short-term. Outlook on the medium to long-term rating is Stable.

The ratings take into account the standing of STML as one of the largest manufacturers and exporters in the textile industry of Pakistan. The company has maintained a strong capital structure over the years. Although the spinning division of STML continues to be under pressure with its narrowing margins, STML has diversified itself into the value-added segments of fabrics and home textiles and is now increasingly focusing on these segments. STML is also taking initiatives to expand its marketing efforts in the export market.

The recessionary pressures in the local and global economy are continuing to keep the local textile industry under stress with rising cost of input and falling exports. However, STML is not likely to face any significant pressure on liquidity due to the low level of leverage employed as well as presence of liquid investments. JCR-VIS foresees no short term pressure on the ratings; however, the ratings may come under stress if the current economic trends persist over a longer period.

In February 2009, JCR-VIS Credit Rating Company Limited had placed the issuer and issue ratings of A-/A-2 (Single A Minus/A-Two) and A (Single A) respectively assigned to Al-Zamin Leasing Modaraba (AZLM) under Rating Watch - Developing Status on account of possible merger with Emirates Global Islamic Bank Limited (EGIBL).