Press Release

Update on ratings assigned to PGP Consortium Limited
 

Karachi, October 31, 2019: VIS Credit Rating Company Limited (VIS) had 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 on September 17, 2019.

Subsequent to the above announcement, Pakistan LNG Terminals Limited (PLTL), with which PGPC has an offtake agreement for LNG, has served a Termination Notice of Operation and Services Agreement to the latter on account of Adequate Assurance of Performance required by PLTL. The dispute resolution under clause 37 of the Agreement, has commenced amongst both parties to resolve the issue of adequate assurance of performance security amicably within 90 days from the time dispute resolution clause was invoked. During the negotiation phase, PGPC will continue to provide storage and gasification services and PLTL will continue to make payments.

Ratings continue to be on ‘Rating Watch-Developing’ status pending the outcome of the dispute resolution matter.

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



Javed Callea
Advisor

Applicable rating criterion: Industrial Corporates (May 2019)
https://www.vis.com.pk/kc-meth.aspx

Notching The Issue (June 2016)
https://www.vis.com.pk/kc-meth.aspx

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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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