VIS Reaffirms Ratings of Foundation Wind Energy-I Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- October 14, 2020 (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 reaffirmed the entity ratings of Foundation Wind Energy-I Limited (FWEL-I) at 'A+/A-1' (Single A-Plus/A-One). The long-term rating of 'A+' signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of 'A-1' denotes high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings is 'Stable'. The previous rating action was announced on June 28, 2019.

The assigned ratings of FWEL-I incorporate its strong ownership profile vested with Fauji Group, through Fauji Foundation and Fauji Fertilizer Bin Qasim Limited, holding major stake in the company. IIF Wind One Limited (CapAsia) is the other sponsor of the company. Given the project is established under the Policy for Development of Renewable Energy for Power Generation, 2006, the ratings derive strength from guaranteed internal rate of return, cost indexation and pass-through tariff structure. Ratings also draw support from cover against wind risk and power evacuation risk. In addition, presence of reputable operational and maintenance (O and M) contractor carrying sound track record mitigates the operational risk.

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