Press Release
VIS Reaffirms Entity Ratings of Gharo Solar Limited
Karachi, October 30, 2026: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Gharo Solar Limited (‘GSL’ 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 strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 27, 2025.
Incorporated in 2016 as a public unlisted company, GSL operates a 50 MW solar photovoltaic (PV) power plant located near Gharo, District Thatta, Sindh, dedicated to generating and supplying electricity to K-Electric. Developed with significant foreign investment, the plant commenced commercial operations in December 2019 and supplies power under a 25-year Energy Purchase Agreement (EPA) with K-Electric.
GSL ratings reflect stable cash flows under its long-term EPA with K-Electric, supported by must-run status, tariff indexation, and an escrow-based collection mechanism. Operating performance remains satisfactory, with generation exceeding regulatory benchmarks. Financial risk has improved through scheduled debt repayments, equity accretion, lower finance costs, and stronger debt servicing capacity. Liquidity remains adequate. However, given the concentration on a single power purchaser, developments relating to K-Electric’s tariff determination and related challenges will remain important going forward.
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/Methodologies-2026/Corporate-Rating-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf