Press Release

VIS Maintains Entity Ratings of Atlas Solar Limited

Karachi, January 07, 2025: VIS Credit Rating Company Limited (“VIS”) has maintained the entity ratings of Atlas Solar Limited (“ASL” or “the Company”) at ‘A/A2’ (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 'A2' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating have been changed to ‘Positive’ from ‘Stable’. Previous rating action was announced on December 26, 2023.

ASL was incorporated in Pakistan in September 2014 with object to construct, operate and own a 100 MW solar power plant for generation and supply of electricity. As at FY24, Atlas Power Limited (“APL” or “the Holding Company”) holds 80% shares of the Company. ASL is ultimately associated with the Atlas Group (“the Group”). In accordance with the Central Power Purchasing Agency (Guarantee) Limited (“CPPA-G”) notification dated April 27, 2022, the Company achieved commercial operations date (“COD”) on April 14, 2022. National Electric Power Regulatory Authority (“NEPRA”) has granted generation license to the Company which is valid until April 13, 2047. The registered office of the Company is in Lahore, Punjab while the facility is situated in District Layyah, Punjab.

Assigned ratings incorporate the medium-to-low business risk profile of the renewable energy sector, characterized by limited exposure to economic cyclicality, regulated market structures, and long-term contractual arrangements through Energy Purchase Agreements (“EPA”). The sector benefits from reduced sensitivity to energy demand fluctuations and moderate technology risks. Challenges are noted due to the capital-intensive nature of the sector and regulatory compliance requirements. The environmental pattern risk, borne by the Company, affects production efficiency; however, independent studies indicate this risk is mitigated over time. Demand risks are minimized through long-term agreements with CPPA-G, ensuring predictable revenue streams. The sponsor’s diversified business interests and strong financial profile enhance the Group’s capacity to withstand economic cycles and provide operational synergies.

Change in outlook considers the financial risk profile of the Company, which reflects improvements in profitability, capitalization, liquidity, and coverage metrics. Profitability has improved due to operational shifts, while the capitalization profile benefits from reduced debt levels and consistent profit retention. Liquidity and coverage metrics demonstrate positive trends, supported by internal cash generation and reduced short-term borrowing with lower working capital requirements. The coverage profile also benefits from tariff mechanisms that ensure debt servicing and operational cost coverage, mitigating financial risks. The Company’s cash conversion cycle is favorable compared to other IPPs, reducing exposure to circular debt.

For further information on this ratings announcement, please contact on 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

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .