Press Release

VIS Reaffirms Entity Ratings of Thal Power (Private) Limited

Karachi, December 12, 2024: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Thal Power (Private) Limited (‘TPL’ or ‘the Company’) at ‘AA/A1+’ (Double AA/A One Plus). 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+' suggests strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on December 22, 2023.

TPL was established on July 3, 2014 in Pakistan and operates as a wholly-owned subsidiary of Thal Limited (‘THAL’ or ‘the Holding Company’). TPL was formed to facilitate THAL's investment in ThalNova Power Thar (Private) Limited (ThalNova). The Company’s primary focus is on power generation and energy production, alongside managing its investment portfolio. TPL’s operations are based at its registered office and business unit in Karachi.

The assigned ratings reflect TPL's low to medium business risk profile, underpinned by predictable cash flows from ThalNova, operational and financial risk mitigation through sponsor support from THAL, and the government-backed payment guarantees tied to the power purchase agreement. While these factors provide stability, the ratings also account for the indirect exposure to cash flow variability stemming from timing mismatches in ThalNova’s collections from the Central Power Purchasing Agency (CPPA-G).

Assigned ratings also consider the financial risk profile of the Company backed by guaranteed income or profit from ThalNova, continuous profitability, stable capital structure, unleveraged balance sheet, and low liquidity risk.

For further information on this ratings announcement, please contact on 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

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 December 12, 2024 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.