Press Release

VIS Reaffirms Entity Ratings of Indus Wind Energy Limited

Karachi, October 14, 2025: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Indus Wind Energy Limited’s (‘IWEL’ or The Company) at 'A/A2' (‘Single A/A Two’). 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 good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on September 10, 2024.

The assigned ratings reflect operational performance track record and financial profile within the renewable energy sector. Ratings are underpinned by the long-term Power Purchase Agreement (PPA) with Central Power Purchasing Agency (CPPA-G), backed by sovereign guarantee, which ensures predictability of revenues and debt-servicing capacity. Operational risks are mitigated through an 11-year Operations and Maintenance (O&M) agreement with GE Vernova International LLC, which guarantees minimum plant availability. In addition, the sponsor profile adds strength through group-level backing from the Indus Group of Companies.

While plant availability has remained above the required threshold, profitability and coverage metrics came under pressure during 9MFY25, owing to sub-benchmark wind conditions and the timing of Non-Project Missed Volumes (NPMV) receipts in the last quarter. Profitability and coverage normalized with seasonally stronger fourth-quarter winds and NPMV settlements, while liquidity remains manageable under the tariff-linked structure. Going forward, the ratings will remain sensitive to the Company’s ability to sustain profitability, manage liquidity, and maintain coverage indicators in line with obligations.


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

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 October 14, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.