Press Release

VIS Reaffirms Entity Ratings of Artistic Energy (Pvt.) Limited

Lahore, May 14, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings assigned to Artistic Energy (Pvt.) Limited (‘AEPL’ or ‘the Company’) at ‘A+/A-1’ (Single A Plus/A-One). The medium to long-term rating of ‘A+’ reflects good credit quality, protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-1’ indicates high certainty of timely payment. Liquidity factors are excellent and are supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 18, 2023.

AEPL is a wholly-owned subsidiary of Artistic Milliners (Pvt.) Limited; the assigned ratings take into account the strong profile of the sponsor. The ratings also draw strength from the long-term Operations & Maintenance (O&M) contract in place with experienced operators as well as the presence of a long-term Energy Purchase Agreement (EPA) with the CPPA which partially mitigates offtake risk and provides adequate insurance coverages. While power produced, and in turn cash flows, are susceptible to seasonality and possible variance in wind speed, comfort is drawn from surveys conducted by international consultants confirming adequate wind availability historically.

The Company’s profitability metrics witnessed a downturn during FY23 on account of dip in operational performance due to government-led curtailments coupled with lower wind resource; however, the same rebounded during the ongoing year owing to uptick in offtake. Nonetheless, the overall liquidity profile remained sound with collection of receivables from CPPA largely on time and adequate cash flow coverages. Additionally, capitalization indicators depicted improvement owing to both equity expansion and lower debt levels in FY23. Going forward, the assigned ratings will remain dependent on maintenance of business and financial risk metrics in line with the assigned benchmarks.

For further information on this ratings announcement, please contact at 042-35723411-13 or email at

Applicable Rating Criteria: Industrial Corporates

VIS Issue/Issuer Rating Scale

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .