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Rating of PPTFC of Avari Hotels Limited maintained by JCR-VIS Credit Rating Company Limited - Press Release issued by JCR-VIS Credit Rating Company...

May 8, 2014



Rating of PPTFC of Avari Hotels Limited maintained by JCR-VIS Credit Rating Company Limited - Press Release issued by JCR-VIS Credit Rating Company Limited

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

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JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the outstanding rating of PPTFC issue of Avari Hotels Limited (AHL) at 'A-' (Single A Minus). Outlook on the rating has been revised from 'Negative' to 'Stable'.

The rating incorporates the profile of sponsors, having extensive experience in the hospitality sector. The 'Avari Group' owns and manages 2 Five Star Hotels and 2 commercial complexes (Avari Plaza) located in Karachi and Lahore.

Furthermore the group also manages an apartment hotel in Dubai and operates budget hotels in Islamabad under the name of 'Avari Xpress'. Going forward, the management plans to further expand the chain of 'Avari Xpress' into major urban cities of Pakistan.

Hospitality industry has witnessed an uptick in recent period. An overall improvement in occupancy rates has been witnessed by Avari Hotels Lahore and Avari Tower Karachi. Accordingly, the company's top-line has posted improvement, while gross margin has remained consistent over the years.

Leverage indicators of the company have showcased improvement on a timeline basis, albeit they continue to remain on the higher side. The PPTFC issue has one installment remaining, which is due for payment in October 2014.

For more information, contact:

Ms. Sobia Maqbool

CFA

JCR-VIS Credit Rating Company Limited

Tel: at 021-35311861-70

Fax: +9221 35311872-3

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Source: Pakistan Press International


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