Press Release
VIS Reaffirms Entity Ratings of Quaid-e-Azam Thermal Power (Private) Limited
Karachi, September 15, 2026: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Quaid-e-Azam Thermal Power (Private) Limited (‘QATPL’ or the ‘Company’) at 'AA+/A1+' (‘Double A Plus/’A One 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. Short-term rating of 'A1+' indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on September 10, 2025.
Quaid-e-Azam Thermal Power (Private) Limited (‘QATPL’ or the ‘Company’) is wholly owned by the Government of Punjab (GoPb). The Company owns and operates Re-Liquefied Natural Gas (RLNG) based Combined Cycle Gas Turbine (CCGT) power plant of 1,163 MW (net) generating capacity at Bhikki, District Sheikhupura, Punjab. Commercial Operation Date (COD) of combined cycle plant was achieved on May 20, 2018. However, National Electric Power Regulatory Authority (NEPRA) determined the final tariff for the Company on Jan 3, 2023.
The reaffirmation of the Company's ratings reflects its strong credit profile, supported by its ownership by the Government of Punjab and the long-term contractual framework governing its operations. The Power Purchase Agreement (PPA) provides revenue visibility and protection for debt servicing through the capacity payment mechanism. The recent settlement agreements with the power purchaser and gas supplier have resolved key contractual disputes and improved the predictability of cash flows. QATPL continues to benefit from the plant’s high thermal efficiency and favorable position in the economic merit order. However, operational performance was temporarily affected by the extended major inspection and technical issues at the plant, with full restoration of capacity dependent on completion of remedial works. The financial impact of the outage is partly mitigated through insurance coverage and designated maintenance and overhauling reserves. The Company’s financial risk profile remains sound, supported by declining long-term debt, improving capitalization and an uninterrupted debt repayment track record. Liquidity is further supported by the capacity payment mechanism, debt service reserve arrangements and access to short-term funding facilities. Ratings are sensitive to the timely restoration and sustained reliable operation of the plant, continued support from the sponsor, effective implementation of revised contractual arrangements, and maintenance of adequate liquidity and debt servicing capacity.
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/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf