Press Release

VIS Upgrades Long-term Entity Rating of Yunus Energy Limited

Karachi, May 25, 2026: VIS Credit Rating Company Limited (VIS) has upgraded the long-term entity rating of Yunus Energy Limited (‘YEL’ or ‘the Company’) from ‘A+’ (Single A Plus) to 'AA-' (Double A Minus) while the short-term rating is maintained at ‘A1’ (Single 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 a 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 May 19, 2025.

Yunus Energy Limited (“YEL” or “the Company”), was incorporated in 2011, operates a 50MW wind power plant comprising 20 Wind Turbine Generators (WTGs) of 2.5MW generation capacity each, located in the Jhimpir-Hyderabad corridor, Sindh. The project was developed at a total cost of USD 123.47 million and was financed through a debt-to-equity ratio of 75:25. The Commercial Operations Date (CoD) was achieved in September 2016. YEL has a 20-year Energy Purchase Agreement (EPA) with Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), dated March 26, 2014.

The assigned ratings of Yunus Energy Limited (‘YEL’ or the ‘Company”) reflect its long-term Energy Purchase Agreement (EPA) with CPPA-G, supported by a sovereign guarantee, which ensures revenue visibility. The sponsor profile remains strong comprising experienced local shareholders and operational risks are mitigated through a long-term O&M contract with an experienced syndicate. Profitability has been sustained through indexed tariff adjustments, while internal equity generation and scheduled debt repayments have supported a conservative capital structure. Liquidity remains adequate, with coverage metrics aligned with operational output.

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 25, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.