Press Release

JCR-VIS finalizes Rating of ‘A-’ for the PPTFC by Sindh Nooriabad Power Company (Pvt.) Limited

Karachi, October 14, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has finalized rating of ‘A-’ (Single A Minus) to the Privately Placed Term Finance Certificates (PPTFCs) of Sindh Nooriabad Power Company (Pvt.) Limited. The Preliminary rating of A+ (Single A Plus) was announced on December 22, 2014.

The project has experienced time and cost over-runs largely on account of external factors. The Commercial Operation Date (COD) which was scheduled for January’2016 has been delayed and the management now expects it to be by end-December’2016. The management is also arranging financing from various sources to meet cost over-runs. We have been given to understand that pending COD of the project, the security structure of the TFC is not commensurate with that contemplated. In view of the change in the rating drivers, the rating has been revised and a ‘Negative’ outlook has been assigned. The ratings may face downward pressure in case COD is delayed further than already envisaged by management.

The rating incorporates the support of Government of Sindh as one of the key stakeholder in the institution under the Public-Private Partnership scheme with Technomen Kinetics (Pvt.) Limited.

For further information on this rating announcement, please contact the undersigned (Ext. 249) at 021-35311861-70 or Mr. Javed Callea (Ext. 234) at 021-35311861-70.

Jamal Abbas Zaidi

Applicable Rating Criteria: Industrial Corporates (May 2016)
Notching The Issues (June 2016)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2016 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited