Press Release

VIS Reaffirms Entity Ratings of AJ Power Limited

Karachi, September 12, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of AJ Power Limited (“AJPL” or “the Company”) at 'A+/A2' (Single A plus/A Two) with a “Stable” outlook. 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 'A2' indicates a good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Previous rating action was announced on August 19, 2024.

AJPPL was incorporated in 2014 and the primary activity of the Company is to build, operate and maintain a solar power plant with a total capacity of 12 MW located in Adhi Kot, District Khushab. The head office of the Company is in Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore. The Project has been granted a generation License from National Electric Power Regulatory Authority (NEPRA), valid up to 2042. The solar farm has an installed capacity of 12 MWp. It is equipped with polycrystalline PV modules and String Inverters, that are arranged in fixed tilt blocks.

The assigned ratings reflect the Company's sustained operational performance and strong financial risk profile. Ratings draw comfort from the long-term energy purchase agreement with CPPA-G, backed by sovereign guarantee which provides assurance of energy payments. The Company is insulated from circular debt accumulation since its PPA is executed with CPPA-G, in line with the framework applicable to other renewable IPPs. Operational risks are mitigated by the O&M agreement with an experienced contractor. The financial risk profile is underpinned by strong margins, improving leverage indicators, and adequate debt coverage, supported by indexed tariff inflows, a declining debt profile, and sound liquidity driven by profit retention and low capital expenditure requirements.

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 September 12, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.