JCR-VIS Reaffirms Ratings of Neelum Jhelum Hydropower Company (Private) Limited - Press Release issued by JCR-VIS Credit Rating Company Limited.

Karachi -- January 03, 2019 (PPI-OT)

Following is the text of press release issued by JCR-VIS Credit Rating Company Limited

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JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the rating of "AAA' (Triple A) assigned to Sukuk issue of Rs. 100 billion of Neelum Jhelum Hydropower Company (Pvt.) Limited (NJHPC). The medium to long-term rating of 'AAA' denotes highest credit quality with negligible risk factors being only slightly more than risk-free Government of Pakistan's debt. Outlook on the assigned rating is 'Stable'. The previous rating action was announced on September 13, 2017.

The rating assigned to the Sukuk issue takes into account first demand guarantee issued by Government of Pakistan covering issue amount of the Sukuk along with profit payments. Additionally, a debt payment account (DPA) is also operating for the timely servicing of the upcoming installments. In case of any shortfall in DPA by NJHPC, WAPDA will inject the required funds. 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. All four units became operational by end-Aug'18 with plant attaining full generation capacity; the first unit was...