Press Release

VIS Reaffirms Entity Ratings of Tower Power (Private) Limited

Karachi, April 24, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Tower Power (Pvt) Ltd (TPL) at ‘A-/A2’ (Single A minus/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 remain ‘Stable’. Previous rating action was announced on February 21, 2024.

The assigned ratings reflect TowerCo’s medium to low business risk profile, supported by the capital-intensive nature of the sector, long-term contract durations with limited termination risk, and built-in escalation clause for Infrastructure Provisioning Fees (IPF). The TowerCo sector is poised for growth, driven by increasing demand for 4G services and the anticipated rollout of 5G technology.

TPL’s financial risk profile shows a positive trajectory, with growing profitability driven by higher base IPFs and escalation rates. The ratings incorporate the Company’s balanced capital structure and adequate debt coverage, even after the mobilization of short-term borrowings—transitioning from a previously short-term debt-free balance sheet.
The company’s liquidity profile remains stable, underpinned by improving Funds from Operations (FFO) and a moderate cash conversion cycle, supported by the absence of inventory days with construction outsourced to its parent company. Moving forward, maintaining growth in net margins, sustaining liquidity, and preserving a stable capital structure will remain crucial factors for the assigned ratings.


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 April 24, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.