Press Release
VIS Reaffirms Instrument Ratings of K-Electric Limited’s Sukuk 6
Karachi, May 11, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the instrument ratings of K-Electric Limited’s (“KEL”, “KE” or “the Company”) Sukuk 6 at AA+ (Double A Plus). Medium to long term rating of “AA+” indicates high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Outlook on the assigned ratings remains Stable. Previous rating action was announced on January 23, 2025.
KE was incorporated as a limited liability company on September 13, 1913, and its shares are quoted on the Pakistan Stock Exchange Limited (PSX). The registered office of KEL is situated in DHA, Karachi. KEL is the only vertically integrated power utility in Pakistan, managing all key areas – Generation, Transmission, Distribution and Supply – ensuring energy delivery to customers within its licensed areas. KES Power Limited (‘’the Holding Company of KEL’’), incorporated in the Cayman Islands, holds 66.4% (2022: 66.4%) shares in KEL as of 2023.
Sukuk 6 was issued on November 23, 2022 with a 7-year tenor maturing on November 23, 2029. The Sukuk is secured through a first charge over hypothecated properties in favour of the Investment Agent for the benefit of Sukuk holders with a 25% margin over the outstanding issue amount. The security package also included a first pari passu hypothecation charge over collections, accounts and deposits, along with lien and right of set-off over balances maintained in the Master Repayment Account (“MRA”) and Sukuk Payment Account.
KE is Pakistan’s only vertically integrated power utility, serving generation, transmission, distribution, and supply functions in Karachi, with KES Power Limited holding 66.4% and the Government of Pakistan retaining a 24.4% stake and the remaining 9.2% pertains to public. The assigned ratings are supported by KEL market monopoly and strategic shareholding. While current financial statements remain unavailable, as per management, the existing cash flows continue to support debt servicing, however, long term financial projections and capitalization strength is closely linked to regulatory outcomes under the Multi-Year Tariff (MYT) framework. Board and management changes have been noted, along with negotiations with the regulator on account of tariff determination. The reaffirmation of the ratings is underpinned by management’s expectation that the pending appeal regarding the Multi-Year Tariff (MYT) determination before the NEPRA Appellate Tribunal will be resolved largely in line with the Company’s recommendations and issuance of financial statements thereof. As per the PSX notice issued by the Company, the relevant authority has advised KEL to transmit its annual financial statements for FY24 & FY25 latest by June 30, 2026.
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For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf