Press Release

VIS Reaffirms Ratings of National Power Parks Management Company (Pvt.) Limited

Karachi, December 24, 2021: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of National Power Parks Management Company (Pvt.) Limited (NPPMCL) at “AA+/A-1+” (Double A-Plus/A-One Plus) on ‘Rating Watch-Developing’ status. The medium to long-term rating of ‘AA+’ denotes high credit quality coupled with strong protection factors. Moreover, risk factors may vary slightly with possible changes in the economy. The short-term rating of ‘A-1+’ denotes highest certainty of timely payments, liquidity factors are excellent and just below risk-free government of Pakistan’s short-term obligations. The previous rating action was announced on December 31, 2020.

The assigned ratings take into account strong ownership profile of NPPMCL being wholly owned and controlled by Government of Pakistan (GoP) through its representative Pakistan Development Fund Limited The ratings draw strength from the company’s strong business profile with demand risk mitigated under Power Purchase Agreement signed with Central Power Purchase Agency (Guarantee) Limited (CPPA). The ratings also draw comfort from obligations of CPPA being guaranteed by the GOP under the Implementation Agreement. Moreover, upholding operational performance in line with agreed performance levels would remain a key-rating driver. Assessment of financial risk profile incorporates sizable revenue generation, adequate margins post revision of return on equity component of capacity purchase price and comfortable profitability metrics. Liquidity indicators of the company remained intact, conforming to healthy funds from operations and sound debt servicing capacity. In addition, owing to sizable internal capital generation, the debt leverage has exhibited an improving trend while gearing was maintained at prior year’s level. The ratings remain sensitive to completion of privatization process of the project; the same has currently been delayed owing to certain legislative changes and restructuring of company’s balance sheet required prior to finalization.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at info@vis.com.pk .



Faryal Ahmad Faheem
Deputy CEO


VIS Entity Rating Criteria: Corporates (August 2021) & Government Supported Entities
https://docs.vis.com.pk/docs/CorporateMethodology202108.pdf
https://docs.vis.com.pk/docs/Meth-GSEs202007.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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .