Press Release

Karachi, May 22, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity rating of FFBL Power Company Limited (‘FPCL’ or ‘the Company’) at ‘AA/A1’ (‘Double A/A One). 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 strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous Rating action was announced on March 27, 2025.
FPCL operates a 118 MW coal-fired power plant, which became operational on May 19, 2017. The entity is a subsidiary of Fauji Fertilizer Company Limited (FFC), under the umbrella of Fauji Foundation (FF). FPCL’s functions include generating power and steam for FFC’s fertilizer complex at Port Qasim and supplying electricity to K-Electric (KE). The plant is located at Port Qasim, Karachi. Shareholding is held by FFC 100%
The ratings reflect FPCL’s strategic role within the Fauji Foundation group, specifically the Bin Qasim Fertilizer Complex in Karachi, underpinned by its long-term power and steam purchase agreements with parent Fauji Fertilizer Company, which provides a predictable revenue base. However, the Company’s take or pay PPA with KE exposes cashflows to merit-order dispatch risk and evolving dynamics in power sector. The company’s financial profile has strengthened following full repayment of long-term debt, translating into very low leverage, robust debt service coverage, and sound liquidity. The stable outlook incorporates expectations that FPCL will maintain conservative financial metrics, sustain reliable performance under the FFC-linked contracts, and prudently manage offtake volatility.

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 May 22, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.