VIS Assigns Preliminary Rating to Proposed Islamic Commercial Paper of Rousch (Pakistan) Power Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- November 22, 2022 (PPI-OT)

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

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VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of 'A-1' (Single A One) to Rousch (Pakistan) Power Limited ('RPPL' or 'the Company') proposed unsecured, Islamic Commercial Paper (ICP) issue of Rs. 2b (inclusive of green shoe option of Rs. 1b). The ICP will have bullet repayment at maturity and will have a tenor of 6 months. The proceeds of the issue will be utilized for RPPL's working capital requirements. The short-term rating of 'A-1' denotes high certainty of timely payments. Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor.

VIS has assigned entity rating of 'AA/A-1' (Double A/A-One) to RPPL. RPPL's business model is devoid of any demand risk. In case electricity is not purchased, RPPL is eligible for guaranteed capacity payment from the Government. The term of Power Purchase Agreement (PPA) will end in February 2031. Despite the settlement of Government of Pakistan (GoP) receivables in Nov'21, the Company continues to face the issue of receivable build up, which stood at Rs. 12.7b as of end-September'2022. The buildup of receivables is a concern, as the same may translate in higher liquidity risk going forward...