Press Release

VIS places Ratings of PGP Consortium Limited on ‘Rating Watch Developing’ Status

Karachi, September 17, 2019: VIS Credit Rating Company Limited (VIS) has placed the entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) assigned to PGP Consortium Limited (PGPC) and ‘BBB’ (Triple B) assigned to its preference shares under ‘Rating Watch-Developing’ status. The medium to long-term rating of ‘A-’ denotes good credit quality with adequate protection factors. Moreover, the risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payment coupled with sound company fundamental and liquidity factors. The long term rating of ‘BBB’ signifies adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. The previous rating action was announced on April 16, 2018.

The ratings assigned to PGPC take into account the ownership profile of the Company. PGPC is a wholly owned subsidiary of Pakistan GasPort Limited (PGPL), whose associate company Jamshoro Joint Venture Limited (JJVL) has experience of establishing and operating energy sector projects. The Project achieved Commercial Start Date upon successful completion of Acceptance Tests with effect from January 04, 2018 as per PLTL Acceptance Certificate. PLTL has guaranteed to purchase from PGPC 600 mmcfd of its regasification capacity on a take-or-pay basis backed by the provision of a revolving Standby Letter of Credit. Since the start of commercial operations, the project has performed satisfactorily and is meeting the guaranteed availability requirements.

The ratings incorporate sustained margins, maintained profitability and adequate leverage indicators; however, change in the assigned outlook takes into account the on-going legal issues with the principal sponsor of the project.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Ms. Maham Qasim at 042-35723411-13.

Jamal Abbas Zaidi

Applicable rating criterion: Corporates (May 2019)

Notching The Issue (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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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