Press Release

VIS Reaffirms Entity Ratings of AJ Power (Private) Limited (AJPL)

Karachi, July 19, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of AJ Power (Private) Limited (AJPL) at ‘A/A-2’ (Single A/A-Two). The medium to long-term rating of ‘A’ signifies good credit quality; protection factors are strong. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on. Previous rating action was announced on Mar 29, 2023.

The primary activity of AJPL is operating a solar plant in Adhi Kot, District Khushab. The assigned ratings take into account low business risk profile underpinned by signing a 25-year long energy purchase agreement (EPA) with ‘take or pay’ provision with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G). Presence of long-term EPA with guaranteed capacity payments mitigates off-take risk as obligations of CPPA-G are backed by sovereign guarantee. Revenue generation from power dispatch and gross margins have remained largely stable over the years. Liquidity profile is underpinned by adequate cash flows to meet financial obligations in timely manner. Financial risk profile also draws strength from steady improvement in leverage indicators with growth in equity base on the back of profit retention, and, scheduled repayments of long-term financing. Upholding operational performance in line with agreed performance levels will remain a key-rating driver. Going forward, ratings will continue to remain dependent on profitability metrics that correlate with sustained efficiency levels.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8001) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

VIS Entity Rating Criteria: Industrial Corporates (May 2023)

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