Press Release

VIS Update on the Entity Ratings of Rousch (Pakistan) Power Limited

Karachi, October 12, 2024: VIS Credit Rating Company Limited (VIS) has placed entity ratings of Rousch (Pakistan) Power Limited (‘RPPL’ or ‘the Company’) of 'AA/A-1' (Double A /A-One) on Rating Watch (RW) – Developing. Previous rating action was announced on May 22, 2024.

Rousch (Pakistan) Power Limited (‘RPPL’ or ‘the Company’) was incorporated on August 4, 1994, as a public unlisted company. The Company commenced commercial operations on December 11, 1999. The principal activity of the Company is to generate and supply electricity to Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) through its combined cycle thermal power plant, having a gross capacity of 450 MW situated near Sidhnai Barrage, Abdul Hakim Town, Khanewal District, Punjab. Power Management Company (Private) Limited (PMCL) possesses majority shareholding of 59.98%, followed by Siemens Project Ventures of Germany (26%), and Electricity Supply Board of Ireland (ESBI) (7.33%). The Board of Directors comprises 7 members with 2 members representing Siemens, 2 members from Descon group and remaining are representatives of other holding companies.

Ratings have been placed on Rating Watch-Developing due to ongoing negotiations with the Government regarding the signing of the Negotiated Settlement Agreement (NSA), in lieu of the termination of Power Purchase Agreements (PPAs) and Implementation Agreements (IAs), as part of the government's efforts to restructure the power sector. As per Management, the Board has approved the terms outlined in the draft NSA. However, the final agreement is subject to shareholder approval to be obtained at the Extraordinary General Meeting (EOGM), scheduled for November 11, 2024. VIS will review the ratings on the finalization of the agreement.

For further information on this ratings announcement, please contact at 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

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