Press Release

Update on Instrument Rating of Neelum Jhelum Hydropower Company (Pvt.) Limited

Karachi, September 13, 2022: VIS Credit Rating Company Limited (VIS) notes that due to unexpected cracks in the tailrace tunnel, the Neelum Jhelum Power Station has been shut down on July 07, 2022 as informed by WAPDA. The last instrument ratings of Neelum Jhelum Hydropower Company (Pvt.) Limited (NJHPC) of ‘AAA’ (Triple A) with a ‘Stable’ outlook was announced on January 12, 2022.

VIS has been informed that the project has been shut for an estimated time of 6 months due to an unforeseen incident at Tailrace Tunnel. The inspection of the damaged area has been done and the recovery activities are underway that may take up to 6 months. As per management, debt servicing during the tenure of the shutdown will be arranged though monthly receipt of outstanding receivables from Central Power Purchasing Agency (CPPAG). The trustee has confirmed collection of up to date principal and interest payments in the Debt Payment Account (DPA). VIS will continue to track the balance of DPA on a monthly basis. Any shortfall in the same during any month may warrant revision in ratings.

The rating assigned to the Sukuk issue take into account unconditional and irrevocable first demand guarantee issued by the President Islamic Republic of Pakistan (on behalf of the Government of the Islamic Republic of Pakistan) (GoP) covering issue amount of the Sukuk along with profit payments. GoP would immediately pay the entire called amount once the demand notice from the trustee is received. Ratings also incorporate strong financial muscle and implicit support from the parent entity, Water and Power Development Authority (WAPDA), in the form of equity injection and funding support.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 207) at 021-35311861-71 or email at

Sara Ahmed

VIS Entity Rating Criteria: Corporates (August 2021) & Rating The Issue (November 2021)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited