Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity rating of Atlas Power Limited (APL) at ‘AA’ (Double A), and the short-term rating at ‘A1+’ (A one plus). These 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 of APL reflect low financial risk owing to stable cash flows, also guaranteed by the Government of Pakistan (GoP) under the Power Purchase Agreement (PPA), subject to adherence to performance parameters. The ratings incorporate low operational risk emanating from established operating track record of the O and M operator – MAN Diesel SE. However, weak financial discipline of the sole customer, National Transmission and Despatch Company (NTDC) would remain a key concern. Although Atlas Power’s tariff structure, being based on Furnace Oil, is relatively higher, the plant’s location near a major consumption centre places it in a relatively better position to remain on NTDC’s priority list. The ratings draw comfort from the company’s association with Atlas Group.
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