Press Release

VIS Upgrades Ratings of Quaid-e-Azam Solar Power (Private) Limited

Karachi, March 13, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Quaid-e-Azam Solar Power (Private) Limited (QASPL) from ‘AA-/A-1’ (Double A Minus /A-One) to ‘AA/A-1+’ (Double A/A-One Plus). 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 highest certainty of timely payment, liquidity factors are outstanding and safety is just below risk free short-term obligations of Government of Pakistan. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on March 04, 2019.

QASPL is the owner 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 commensurate 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 a sub-sovereign - the Government of Punjab. The ratings draw comfort from sovereign guarantees on power purchaser’s payment obligation. The ratings also factor in notable growth in revenue and profits on account of higher electricity deliveries during FY19, sound liquidity profile underpinned by healthy cash flows generation, continuous improvement in leverage indicators, and maintenance of current ratio and debt service coverage ratio well-above the minimum required thresholds. Given low working capital requirements and no plan to mobilize new borrowings, the leverage indicators are expected to improve further on account of scheduled repayments of long-term debt.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at 021-35311861-70 (Ext. 201) or

Jamal Abbas Zaidi

VIS Entity Rating Criteria: Corporates (May 2019)

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