Press Release
VIS Maintains Entity Ratings of Kot Addu Power Company Limited
Karachi, November 11, 2026: VIS Credit Rating Company Limited (‘VIS’) has maintained the entity ratings of Kot Addu Power Company Limited (‘KAPCO’ or ‘the Company’) at ‘A+/A1’ (Single A Plus/A One). The medium to long-term rating of ‘A+’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A1’ Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Rating Watch has been removed and ‘Stable’ outlook has been assigned on medium to long-term rating. The previous rating action was announced on March 31, 2026.
KAPCO, incorporated in 1996, as a public limited company under the Companies Ordinance, 1984 (now Companies Act, 2017), operates a multi-fuel (gas / RLNG, furnace oil and high-speed diesel) power generation facility in Kot Addu, District Muzaffargarh, Punjab. On June 3, 2025 the Company signed a new Tripartite Power Purchase Agreement (TPPA) for 495 MW capacity with CPPA-G and National Grid Company of Pakistan Limited (NGC). The TPPA is effective from September 13, 2025, and has a duration of 3 years from effective date. The Company has a corporate office located in Lahore and registered office located in Islamabad.
Assigned ratings reflect the Company’s strategic importance to Pakistan’s power infrastructure, including black-start functionality and the resumption of operations under a revised three-year TPPA. The Company’s sizeable liquid asset base, manageable leverage and ongoing strategic repositioning through investments in Attock Cement Pakistan Limited (ACPL) provide further support. KAPCO is pursuing a strategic transition to diversify its earnings base beyond conventional thermal power generation, with its investment in ACPL representing a key step in this direction. The new investments, alongside potential future diversification initiatives, are expected to contribute to profitability over the medium term and gradually reduce the Company’s reliance on its existing power generation arrangements. The extent of these benefits will depend on the operating performance and cash-generating capacity of the new investments, as well as the sustainability of KAPCO’s core operations. Accordingly, successful execution of the diversification strategy, prudent capital allocation and preservation of liquidity will remain important to strengthening the Company’s financial profile.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/Methodologies-2026/Corporate-Rating-2026.pdf
Government Supported Entities:
https://docs.vis.com.pk/Methodologies-2025/GSEntities.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf