PACRA Maintains Entity Ratings of Kohinoor Energy Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- March 24, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The ratings reflect the strong business profile of Kohinoor Energy Limited (Kohinoor Energy), emanating from the demand risk coverage under the Power Purchase Agreement signed between Power Purchaser and the Company. Meanwhile, the Implementation Agreement provides a sovereign guarantee for cashflows, given adherence to agreed performance benchmarks. Kohinoor Energy continues to meet its availability and efficiency benchmarks - an outcome of technically sound O and M team, robust systems and controls.

The company's financial risk profile, that has shown improvement in recent past, is largely dependent on repayment behaviour of the power purchaser. As the receivables declined due to payments received from Government under master agreement, the Company's working capital cycle improved, eventually reducing its reliance on funding from banking lines.

During 6MCY23 the Company has dispatched 168,042 MWH of electricity as compared with 229,118 MWH dispatched during the corresponding period of the previous year. Business risk is considered low exhibited by demand risk coverage under the Power Purchase Agreement signed between power purchaser and the company.

Going forward, we expect the profitability to improve...