Lahore, November 23, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Kohinoor Energy Limited (KEL) at “AA”(Double A) and “A1+”(A one plus) respectively. The ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
The ratings reflect robust financial profile of KEL, supported by a low leveraged capital structure – project debt paid off. The structure of the IPP provides cushion to the company whereby adherence to agreed upon performance parameters, set under the Power Purchase Agreement (PPA), would isolate the company from any major business or financial risk.
The ratings recognize the successful management of Operations and Maintenance (O and M) activities in-house – an outcome of technically sound management, robust systems and controls and strong governance structure.
Only major maintenance tasks are outsourced to Wartsila. Despite the prevailing circumstances – inter-corporate debt and weak financial standing of the sole power purchaser – the project company is adequately managing its working capital requirements.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425