Press Release

VIS Credit Rating Assigns Initial Entity Ratings to Tricom Wind Power (Private) Limited

Karachi, November 08, 2021: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A/A-2’ (Single A /A-Two) to Tricom Wind Power (Private) Limited (TWPPL). Long Term Rating of ‘A’ reflects good credit quality, adequate protection factors. Risk factors may vary with possible changes in the economy. Short Term Rating of ‘A-2’ indicates good certainty of timely payment, sound liquidity factors and company fundamentals; access to capital markets is good and risk factors are small. Outlook on the assigned ratings is ‘Stable’.

TWPPL operates a 50 Megawatt (MW) wind power farm, located at Jhimpir Wind Corridor. TWPPL commenced commercial operations in September 2021.

Assigned ratings incorporate successful commissioning of the plant, low business risk and adequate financial risk profile. The company is part of Yunus Brother Group (YBG), a reputable conglomerate with strong financial profile and presence in diversified sectors including cement, power generation, building materials, real estate, textile, chemicals, pharmaceuticals, food and automotive sectors.

Presence of long term EPA mitigates off-take risk while adequate insurance coverage remains in place. While power produced and in turn cash flows are susceptible to seasonality and possible variance in wind speed, comfort is drawn from surveys conducted by international consultants confirming adequate wind availability historically.

Assessment of financial risk profile incorporates sound projected debt coverage metrics and healthy cash flows in relation to outstanding obligations indicating satisfactory projected debt servicing ability; however, erratic payment cycle exhibited by power purchaser may translate into some liquidity pressures. The assigned rating incorporate elevated leverage indicators in line with project funding mix. Leverage indicators are expected to improve over time owing to debt repayments and internal capital generation. Ratings remain dependent on maintaining satisfactory operating parameters and achieving projected improvement in leverage indicators over the rating horizon.

For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext. 201) at 021-35311861-70 or email at

Javed Callea

Applicable Rating Criteria: Industrial Corporates (August 2021)

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