Press Release

VIS Reaffirms Ratings of National Power Parks Management Company (Pvt.) Limited

Karachi, December 30, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of National Power Parks Management Company (Private) Limited (NPPMCL) at ‘AA+/A-1+’ (Double A Plus/A-One Plus). Outlook on the assigned ratings is ‘Rating Watch-Developing’. The previous rating action was announced on December 30, 2020.

The assigned ratings reflect the company’s strong sponsor profile and favorable nature of Power Purchase Agreement (PPA). Ratings also draw strength from the company’s strong business profile, with demand risk mitigated by PPA signed with Central Power Purchase Agency (Guarantee) Limited (CPPA) under the ‘take or pay’ arrangement. Both plants of the company being placed in top 20 projects in the merit order determined by National transmission & Despatch Company (NTDC) and being categorized as must-run projects provides support to the business risk profile of the company.

During FY22, the company recorded higher revenues and net profit due to tariff indexation and higher available capacity. However, gross margins declined to 9.5% during FY22 with higher percentage increase in costs in relation to revenues. FFO to Total Debt and FFT Long-term Debt coverages were reported higher at 34% and 65%, respectively while Debt Servicing Coverage recorded at 2.1x. Equity base of the company has further strengthened due to profit retention and was reported at Rs. 224b at end-FY22 (FY21: Rs. 191b). With debt levels increasing marginally, gearing ratio was reported lower at 0.39x (FY21: 0.46x).

The ratings assigned to NPPMCL are dependent upon successful completion of the privatization process. The ratings may be upgraded upon successful completion of the privatization process, finalization of recapitalization and refinancing arrangements resulting in improved capital structure and improved financial performance. Negative rating action may result from delay in completion of the privatization process, a significant reduction in the financial profile of the company especially profitability and solvency indicators, delays in tariff indexation etc.

For further information on this rating announcement, please contact Ms.Asfia Aziz (Ext: 212) or the undersigned (Ext: 308) at 021-35311861-70 or email at

Faryal Ahmad Faheem


Applicable Criteria: Entity Ratings (August 2021)

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