Press Release

VIS Assigns ‘Positive’ Outlook to the Ratings of Quaid-e-Azam Solar Power (Private) Limited

Karachi, March 04, 2019: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Quaid-e-Azam Solar Power (Private) Limited (QASPL) at ‘AA-/A-1’ (Double A Minus /A-One). The medium to long-term rating of ‘AA-’ denotes high credit quality coupled with strong protection factors. Moreover, risk factors may vary slightly with possible changes in the economy. The short-term rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Rating Watch-Developing status assigned to the ratings has been removed. Outlook on the assigned ratings is now ‘Positive’. The previous rating action was announced on November 17, 2017.

QASPL is the owner and operator of a 100 MW solar power generation facility, which has been operating commercially since July, 2015. Its power generation license is valid till 2039 and consummates with the expected useful life of Photo Voltaic (PV) panels. The assigned ratings take into account the ownership profile as QASPL is a wholly owned company of the Government of Punjab (GoPb). The privatization of QASPL has been shelved for the time being. The ratings also incorporate sovereign guarantees on power purchaser’s payment obligation and maintenance of current and debt service coverage ratios well-above the minimum required threshold. The ratings also factor in maintenance of sound profit margins and improving leverage indicators on a timeline basis. The pending appointment of directors from the private sector in the board of directors is expected in March’19.

For further information on this rating announcement, please contact undersigned (Ext: 201) or Mr. Maimoon Rasheed (Ext: 8008) at 35311861-70/ 042-35723411 or fax to 35311872-3.

Javed Callea

VIS Entity Rating Criteria Industrial Corporate (May 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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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