Press Release
VIS Reaffirms Entity Ratings of K Nova (Pvt) Limited (Formerly K-Solar (Pvt.) Limited)
Karachi, October 20, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of K-Nova (Private) Limited (K-Nova’ or ‘the Company’) at ‘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’ signifies 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 10, 2025.
K-Nova was incorporated on September 18, 2020, as a wholly owned subsidiary of KE Venture Company (Private) Limited (KEVCL), which in turn is wholly owned by K-Electric Limited (KEL). The Company was originally incorporated as K-Solar (Private) Limited and was rebranded as K-Nova on September 28, 2026, reflecting its broader strategic focus on providing diversified renewable energy solutions. Its registered office is in Karachi. The Company is engaged in distribution and generation of electricity, providing solar and wind-based renewable energy solutions to commercial and industrial clients, operating through Power Purchase Agreements, Equipment Rental Agreements, and an Engineering, Procurement, and Construction model, supplemented by value-added services such as operation and maintenance and battery energy storage.
The assigned ratings reflect the Company's improving profitability trajectory, evidenced by strengthening gross and operating margins, supported by revenue diversification and sustained procurement efficiencies, though net margin moderated on account of higher finance costs associated with additional borrowing undertaken for business expansion. The ratings also consider the continued narrowing of the Company's negative Funds from Operations, indicating a gradual normalization of internal cash generation. The assigned ratings, however, are predominantly underpinned by K-Nova’s status as a wholly owned subsidiary of the K-Electric Limited (KEL) Group, benefiting from strong sponsor support, shared governance oversight, and alignment with KEL’s broader strategic diversification objectives.
The ratings continue to reflect the cyclical and evolving nature of Pakistan’s renewable energy sector, including exposure to regulatory changes such as the net-billing framework under the Prosumer Regulations 2026, fiscal policy uncertainty surrounding import duties, and the Company’s rising leverage and modest debt-servicing coverage as it finances its capacity expansion. Going forward, sustained capacity expansion, improvement in debt-servicing coverage metrics, and continued sponsor support from the KEL Group will remain important considerations for the assigned ratings.
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/Methodologies-2026/Corporate-Rating-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf