Press Release
VIS Reaffirms Instrument Rating of Neelum Jhelum Hydropower Company (Pvt.) Limited
Karachi, September 11, 2025: VIS Credit Rating Company Limited (VIS) reaffirms the instrument rating of Neelum Jhelum Hydropower Company (Pvt.) Limited (“NJHPC “or “the Company”) at ‘AAA’ (Triple A) with a ‘Stable’ outlook. Medium to long-term rating of ‘AAA’ denotes highest credit quality; the risk factors are negligible, being slightly more than for risk-free Government of Pakistan’s debt. Previous rating action was announced on January 12, 2023.
The rating assigned to the Sukuk issue takes into account unconditional and irrevocable first demand guarantee issued by the President of Islamic Republic of Pakistan (on behalf of the Government of the Islamic Republic of Pakistan) (GoP) covering issue amount of the Sukuk along with profit payments. GoP would immediately pay the entire called amount once the demand notice from the trustee is received. Ratings also incorporate strong financial support from the parent entity, Water and Power Development Authority (WAPDA), in the form of funding support.
VIS notes that Neelum–Jhelum Hydropower Project is currently offline due structural issues in its headrace tunnel. After a prolonged outage in 2022–23 and temporary restoration in 2024, the plant was again shut down in May 2024. While repair work is in progress, debt servicing of subject Sukuk remains on track through receipt of outstanding receivables from the Central Power Purchasing Agency (CPPA) backed by the sovereign guarantees. The Sukuk trustee has confirmed that all principal and interest payments under the Debt Payment Agreement (DPA), including the payment due at the end of June 2025 are up to date.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf