Press Release
VIS Reaffirms Entity Ratings of Ghotki Kandhkot Road & Bridge Company (Pvt.) Limited
Karachi, November 03, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Ghotki Kandhkot Road & Bridge Company (Pvt.) Limited (‘’GRBC’’ or ‘’the Company’’) at 'A/A2' (Single A/A Two). The long-term rating of ‘A’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘’Stable’’. Previous Rating action was announced on July 31, 2024.
Incorporated in May 2018, GRBC is a subsidiary of Sachal Engineering Works (Private) Limited ('SEWL' or 'the Holding Company'), which currently owns 53.33% of the Company. Government of Sindh (GoS) holds the remaining 46.67% shares without any voting rights. GRBC operates as a special purpose vehicle (SPV) for undertaking the design, finance, building, operation, and transfer (DFBOT) of the project. Originally the project envisaged construction of a 30.2 kilometers (kms) highway and a 2 km bridge over the River Indus on DFBOT basis. In November 2022, the project scope was expanded to include building a bridge across the entire span of River Indus along with approach roads from both Ghotki and Kandhkot sides. Furthermore, a Thul Link Road was also added to the project.
The ratings reflect sound shareholding profile of GRBC owned by SEWPL and GoS. SEWPL brings extensive experience and a sound track record in infrastructure projects, particularly toll roads and bridges across the River Indus. SEWPL’s financial standing in also considered strong, supporting the project’s stability and execution capability. At the same time, GRBC’s association with the sub-sovereign, GoS, provides comfort to the ratings
The ratings also incorporate low business risk profile, underpinned by minimal demand risk and established construction milestones between GoS and GRBC. Full financial backing from the GoS and SEWL reinforces the assigned ratings. However, potential liquidated damages and implementation risk due to project delays pose a significant constraint on the ratings.
The ratings incorporate a strengthened security structure comprising a continuous, unconditional, and irrevocable debit authority on the GoS, supported by the Provincial Guarantee covering 50% of the debt to be obtained. Advance quarterly annuity payments by GoS to GRBC, covering O&M costs, taxes, debt obligations, a fixed ROE, and equity redemption, provide adequate support to the Company’s coverage profile. The ratings also acknowledge the Company’s immunity from financial repercussions in case of project termination. Additionally, the implementation of the Environment Management Plan (EMP) as part of an Environment, Sustainability Governance (ESG) framework contributes positively to the assigned ratings.
Going forward, the ratings will remain sensitive to achieving financial close, adherence to key project milestones, and the execution of the project without material cost or time overruns.
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