Press Release

VIS assigns initial ratings to Gharo Solar (Pvt.) Limited

Karachi, May 03, 2019: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Gharo Solar (Pvt.) Limited (GSPL). The medium to long-term rating of ‘A-’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’.

The ratings assigned to GSPL incorporate its sponsor profile with major shareholding vested with Rana Nasim Ahmed who has significant experience of setting up green field projects in power and industrial sector. Mr. Nasim is also the main sponsor of Harappa Solar (Private) Limited (HSPL). Windforce (Private) Limited (WPL), Sri Lanka based energy generation company, is the other major sponsor of the company. WPL has extensive experience in establishing renewable energy based IPPs and operating a portfolio of solar and small hydro projects. Moreover, underlying economic risk factors are largely mitigated by inking of 25 year-long energy purchase agreement signed with K-electric. The ratings draw comfort from upfront funding of two debt reserve account installments coupled with upfront funding of degradation reserve and working capital requirements. The ratings remain dependent upon timely completion of the project in terms of agreement with the power purchaser.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Javed Callea

Applicable rating criterion: Corporates (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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