Press Release

JCR-VIS assigns final rating to the Sukuk issue of Agha Steel Industries Limited

Karachi, August 24, 2018: Upon review of signed legal documents, JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has finalized rating of ‘A+’ (Single A Plus) to the Sukuk issue of Rs. 5 billion (inclusive of a Green Shoe Option of Rs. 1 billion) of Agha Steel Industries Limited (ASIL). Outlook on the assigned rating is ‘Stable’. JCR-VIS has assigned an entity rating of A/A-1 to ASIL.

The assigned ratings incorporate ASIL’s position as a top-tier player in the long steel sector enjoying strong brand name and recognition, healthy financial risk profile and strong debt servicing mechanism for the Sukuk. Ratings also reflect high business risk profile of the sector as evident from expected increase in competition post capacity expansion by established existing and new players (Aggregate capacity of established players increasing by around 3(x)), significant reliance of the sector on duty protection, cyclical nature of the industry and significant rupee depreciation resulting in higher working capital requirements. However, these factors are partially mitigated by healthy demand outlook due to ongoing construction activities and demand from large infrastructure projects.

For further information on this rating announcement, please contact the undersigned (Ext: 201) or Mr. Talha Iqbal (Ext: 213) at (021)35311861-70 or fax to (021) 35311872-3.

Javed Callea

Applicable Rating Criteria: Industrial Corporates (May 2016)

Applicable Rating Criteria: Instrument (June 2016)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2018 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