Press Release
VIS Maintains Entity Ratings of Artistic Energy Private Limited
Karachi, May 12, 2025: VIS Credit Rating Company Limited (VIS) maintained entity ratings of Artistic Energy (Private) Limited (“AEPL” or “the Company”) at 'A+/A1' (Single A plus/A one). 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 'A1' indicates a strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The outlook on the assigned ratings changes to “Positive” from "Stable". Previous Rating action was announced on May 14, 2024.
Incorporated in 2014, AEPL operates a 49.3MW (29 Wind Turbine Generators (WTGs) of 1.7 MW generation capacity each) wind power plant in Jhimpir, District Thatta, Sindh, which was setup at a total cost of Rs 11.7b. The Project was funded in a debt-to-equity ratio of 75:25. The Commercial Operations Date (CoD) was achieved on March 16, 2018. AEPL has a 20-year Energy Purchase Agreement (EPA) with Central Power Purchasing Agency (CPPA). The Engineering, Procurement and Construction (EPC) was jointly undertaken by Hydrochina International Engineering Co., Ltd. (HIEC) and Hydrochina Corporation. General Electric (GE) is managing the O&M for AEPL.
Assigned ratings incorporate the business risk profile of Pakistan’s renewable energy sector, which is assessed as medium, supported by favorable policy incentives, rising energy demand, and natural resource availability. Government policies, including the Alternative and Renewable Energy Policy 2019 and the IGCEP 2047, aim to enhance renewable energy's share in the power mix through competitive bidding and infrastructural reforms. Geographic and climatic conditions, coupled with growing international interest, continue to support sectoral development. Nonetheless, regulatory unpredictability, technological shifts, and high capital intensity pose structural risks. Substitution from conventional energy sources and market entry dynamics remain considerations. Ratings also reflect comfort from the Company’s sponsor profile, comprising Artistic Milliners (Private) Limited, a vertically integrated textile and energy group. Revenue certainty is underpinned by a long-term Energy Purchase Agreement with CPPA-G, backed by sovereign guarantees. Operational reliability is maintained through long-term O&M arrangements with an established international service provider under a defined plant availability commitment.
Assigned ratings also consider the financial risk profile of the Company. Profitability trends are supported by indexation mechanisms and contractual provisions within the tariff structure. Revenue performance reflected variation based on generation levels, while margins remained within the historical range. Internal capital generation and scheduled repayments contributed to gradual improvement in the capitalization profile. The Company maintains a conservative capital structure, with no short-term borrowings and reliance on internal funding for operational requirements. The debt profile includes long-term financing under the State Bank of Pakistan’s renewable energy scheme. Liquidity profile remains adequate, as reflected by internal fund retention and limited capital commitments. Coverage indicators showed improvement, though lower offtake during the current period led to moderation in debt servicing metrics, which continue to reflect adequate levels. Positive Outlook reflect the Company’s improving operational performance and strengthening financial profile within the context of a medium-risk renewable energy sector.
For further information on this rating 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