Press Release
VIS Assigns Initial Entity Ratings to K-Solar (Private) Limited
Karachi, September 10, 2025: VIS Credit Rating Company Limited (VIS) assigns initial entity ratings to K-Solar (Private) Limited (‘K-Solar’ or ‘KSPL’ or ‘the Company’) of 'A+/A1' (Single A Plus/A One). 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 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The outlook on the assigned ratings is “Stable”.
KSPL was incorporated in 2020, as a private limited company. The entity operates as a wholly owned subsidiary of KE Venture Company (Private) Limited, which itself is entirely owned by K-Electric Limited. KSPL has been established to engage in the distributed generation segment, with its core business involving the provision of renewable energy solutions to end-users. The Company facilitates consumers in diversifying their energy mix through the implementation of solar photovoltaic systems.
The assigned entity ratings reflect the Company’s evolving business model, improving financial metrics, and sponsor backing from its ultimate parent, K-Electric Limited (rated AA/A1+). The ratings draw comfort from the strategic integration with K-Electric and demonstrated equity support. Operating within Pakistan’s medium-risk renewable energy sector, K-Solar holds a favorable position in the Commercial and Industrial (C&I) solar segment, where structural cost savings, rising grid tariffs, and growing ESG-driven demand are driving market growth, although competitive intensity in the industry remains elevated, posing challenges to customer acquisition and exerting pressure on margins. The Company's diversification into the PPA/Rental model, alongside its existing EPC platform, is expected to augment revenue streams. Governance remains closely aligned with the parent company, enabling strategic consistency and financial oversight.
The Company has demonstrated a meaningful turnaround, with profitability improving on the back of operational scale-up, disciplined cost control, and enhanced pricing power. Gross and net margins have expanded materially, reflecting growing operational maturity. The capital structure remains conservative, though additional funding is anticipated in line with PPA/Rental expansion. Liquidity remains strong and coverage metrics, while initially constrained, are expected to stabilize as the operating portfolio matures and debt servicing aligns with structured cash inflows. The ratings remain underpinned in K-Solar’s ability to execute its growth strategy effectively while maintaining financial discipline in the face of a competitive market environment.
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