Press Release

Karachi, December 8, 2020: VIS Credit Rating Company Limited (VIS) has finalized the rating of ‘A-1+’ (A-One Plus) assigned to Islamic Commercial Paper (ICP) / Short-Term Sukuk (STS) Issue-1 of Rs. 5b by Kot Addu Power Company Limited’s (KAPCO) proposed. Preliminary rating action was announced on September 9, 2020.
The instrument features three tranches and tenure of six months; ICP/STS Issue-I will be repaid before the expiry of the existing PPA. Repayment structure comprises a bullet payment of face value at the end of the maturity of the respective ICP/STS issuance. Given that the issuance is of short-term tenor and will mainly replace the commercial borrowings, leverage indicators are expected to remain largely around current levels. KAPCO has an outstanding entity ratings of ‘AA+/A-1+’ (Double A Plus/A-One Plus) from VIS.
For further information on this rating announcement, please contact Arsal Ayub at 021-35311861-70 (Ext: 215) or the undersigned or email at info@vis.com.pk
Faryal Faheem Ahmed
Deputy CEO

VIS Entity Rating Criteria: Corporates - May 2019
https://www.vis.com.pk/kc-meth.aspx

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 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 December 08, 2020 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.