Press Release
VIS Upgrades the Entity Rating of Atlas Solar Limited
Karachi, April 21, 2026: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Atlas Solar Limited (“ASL” or “the Company”) to ‘A+/A1’ (Single A Plus/ A One). The 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. The 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 has been revised from ‘Positive’ to ‘Stable’. Previous rating action was announced on January 07, 2025.
ASL was incorporated in Pakistan in September 2014 with an object to construct, operate and own a 100 MW solar power plant for generation and supply of electricity. As at end-FY25, Atlas Power Limited (“APL” or “the Holding Company”) held 80% shares of the Company. ASL is ultimately associated with the Atlas Group (“the Group”). The Company achieved commercial operations date (“COD”) on April 14, 2022. National Electric Power Regulatory Authority (“NEPRA”) has granted generation license to the Company which is valid until April 13, 2047. The registered office of the Company is in Lahore, Punjab while the facility is situated in District Layyah, Punjab. Operations and maintenance (O&M) activities have been brought in-house by the Company since 2024.
The assigned ratings reflect ASL’s association with the Atlas Group and the presence of a long-term Energy Purchase Agreement with CPPA-G, supported by sovereign guarantee coverage. Moreover, the ratings incorporate the Company’s operational performance, with capacity factors consistently recorded above benchmark levels and high availability of the plant. Financial indicators reflect improvement in capitalization, coverage, and liquidity profiles, supported by scheduled debt amortization and repayment of short-term borrowings. The ratings also factor in the issuance of NEPRA’s true-up tariff adjustment in 2024, which revised the Company’s reference tariff based on actual project cost and financing parameters at COD.
The Company's EPA is under renegotiation with the government, consistent with the ECC's broader review of power purchase agreements across the IPP sector. The financial implications of the renegotiation, including any revision to the tariff structure, remain subject to the outcome of ongoing negotiations; however, debt servicing capacity is expected to remain protected under the revised terms. The outcome of the renegotiation will be factored into the rating assessment accordingly.
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