Press Release
VIS Upgrades Entity Ratings of AJ Power Limited
Karachi, September 21, 2026; VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of AJ Power (Private) Limited (‘AJPPL’ or ‘the Company’) from A+/A2 (Single A plus / Single A Two) to AA-/A1 (Double A minus / 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 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 September 12, 2025.
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 2-A, Expo Tower, Block H-3, Johar Town, 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.
Ratings upgrade reflect the timeline consolidation in Company’s stable operating profile, supported by a long-term Energy Purchase Agreement (EPA) with Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) on a take-or-pay basis, backed by a sovereign guarantee from the Government of Pakistan (GoP). The contractual framework, including compensation for non-project missed volumes (NPMV), provides strong revenue visibility and mitigates counterparty and demand-related risks. The Company’s solar plant has demonstrated consistent operational performance, with high plant availability and generation remaining above benchmark requirements. Operational risks are further mitigated through a dedicated O&M arrangement with an experienced contractor, supported by performance guarantees and liquidated damages provisions. Financial risk has strengthened on the back of continued debt amortization, accumulation of retained earnings, and limited working capital requirements inherent to the renewable energy business model. Consequently, the capital structure and debt servicing capacity have improved, while liquidity remains sound due to predictable tariff-based cash flows and the absence of significant expansion or 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