Press Release

VIS Reaffirms Entity Ratings of Artistic Wind Power (Pvt.) Limited

Karachi, April 18, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Artistic Wind Power (Pvt.) Limited (AWPPL) to ‘A/A-2’ (Single A/A-Two). 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 ‘A-2’ denotes good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on April 08, 2022.

AWPPL is a 50MW wind power plant situated in Jhimpir, District Thatta, Sindh. It is a wholly owned subsidiary of Artistic Milliners (Pvt.) Limited (AMPL). The assigned ratings incorporate sound financial profile of sponsor. The plant has been operational under long- term O & M contract with experienced contractors for around a year and remained compliant within assigned benchmark. Business risk profile is supported by long-term Energy Purchase Agreement (EPA) with guaranteed capacity payments and relevant insurance coverages. Although 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 tariff petition for reflection of true up costs in tariff is under review by NEPRA.

AWPPL among several other wind power projects have been facing seasonal curtailments since Oct’22, which according to National Transmission & Dispatch Company (NTDC) has been due to availability of cheaper power sources amid excess power generation in winter. Going forward, profitability profile is expected to be supported by higher tariff adjustments emanating from provision of interim relief. Albeit, the ongoing and recurring circular debt may translate into some liquidity pressure, comfort is drawn given receivable collection from Central Power Purchasing Agency (CPPA) has remained robust as the same have been duly cleared at the end of each quarter. Leverage indicators have remained high largely owing to higher debt levels. Going forward, leverage indicators are expected to improve steadily on account of scheduled debt repayments and growth in equity base due to internal capital generation. Nonetheless, that debt repayments have been accounted for in the approved tariff, projected debt coverage profile is considered adequate. The assigned rating remains dependent on maintenance of business and financial risk metrics in line with benchmark for the assigned rating.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-4 (Ext. 207) or email at

Sara Ahmed

Applicable rating criterion: Corporates (August 2021)

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