Press Release

VIS Reaffirms Entity Ratings of Nishat Chunian Power Limited

Karachi, February 20, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Nishat Chunian Power Limited (‘NCPL’ or ‘the Company’) at 'A+/A2' (Single A plus/A Two) with a “Stable” outlook. Medium to long term rating of ‘A+' indicates good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Previous rating action was announced on November 25, 2024.

Nishat Chunian Power Limited (‘NCPL’ or ‘the Company’) was incorporated in 2007 as a public limited company with the primary activity of operating a 200 MW residual fuel oil (RFO)-based power plant in District Kasur, Punjab. The Company has a 25-year and 75-days Power Purchase Agreement (PPA) with the Central Power Purchasing Agency-Guarantee (CPPA-G), which was originally structured on a take-or-pay basis and has subsequently been amended to a Hybrid Take-and-Pay framework, with net production levels of 195.722 MWh (megawatt per hour). The project achieved commercial operations in 2010. The facility comprises 11 generators, allowing it to be operated as a peaking power plant.

The assigned ratings reflect the Company’s operation of a fuel-based power plant under a long-term Power Purchase Agreement with the Central Power Purchasing Agency-Guarantee, providing contractual revenue visibility within a regulated framework. The ratings also incorporate the Company’s association with the Nishat Group, experienced management, and established governance structure. Consideration is given to the plant’s role as a peaking facility, resulting in variability in dispatch, and recent amendments to the PPA that revised tariff components and return mechanisms while retaining sovereign-backed arrangements. Financial risk is supported by the absence of long-term debt, strong liquidity indicators, and improved coverage metrics, partially offset by exposure to regulatory changes and system-wide demand dynamics.

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

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 February 20, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.