KARACHI, (APP – UrduPoint / Pakistan Point News – 27th Nov, 2020 ) :VIS Credit Rating Company Limited has reaffirmed the entity ratings of PGP Consortium Limited at single A minus/A-two and triple B of its preference shares on ‘rating watch-developing’ status.
The medium to long-term rating of ‘A-‘ signifies good credit quality with strong protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals, said release on Friday.
The long-term rating of ‘BBB’ signifies adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. The previous rating action was announced on October 31, 2019.
The ratings assigned to PGPC takes into account company’s ownership profile, unique business model and strategic positioning in the power sector of the country. PGPC is a wholly owned subsidiary of Pakistan GasPort Limited (PGPL), whose associate company Jamshoro Joint Venture Limited (JJVL) has sizable experience of establishing and operating energy sector projects.
Ratings factor in company’s low business risk profile encompassing long-term energy supply contract inked with Pakistan LNG Terminals Limited (PLTL) ensuring guaranteed sales. Leverage indicators are comfortable; the same are expected to improve over time owing to debt repayments and internal capital generation and are captured in the assigned ratings.