Press Release

VIS Assigns Initial Entity Ratings to AJ Power (Private) Limited

Karachi, February 23, 2021: VIS Credit Rating Company Limited (VIS) has assigned the initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to AJ Power (Private) Limited (AJPL). The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound. Outlook on the assigned rating is ‘Stable’.

The principal activity of AJPL is to build, own, operate and maintain a solar plant having a total capacity of 12 MW in District Khushab. The assigned ratings take into account low business risk profile of the company underpinned by inking an energy purchase agreement (EPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) for a period of 25 years and sound shareholders profile. The plant started commercial operations in December 2017.

O&M operator is liable to pay AJPL the plant uptime and guaranteed Performance Ratio (PR) LDs, as compensation for damages and not as penalty, for failure to meet the Plant Uptime Warranty and guaranteed PR. The ratings also factor in moderate financial risk profile of the company with manageable coverages and improving leverage indicators. Given no plans for further borrowings over the ratings horizon, the leverage indicators are expected to improve, going forward.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at 021-35311861-70 (Ext. 201) or email at

Faryal Faheem Ahmed
Deputy CEO

VIS Entity Rating Criteria: Corporates (May 2019)

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 .

VIS Credit Rating Company Limited