Karachi, October 31, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) had placed the entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) assigned to PGP Consortium Limited (PGPC) and ‘BBB’ (Triple B) assigned to its preference shares under ‘Rating Watch-Developing’ status on September 17, 2019.
Subsequent to the above announcement, Pakistan LNG Terminals Limited (PLTL), with which PGPC has an offtake agreement for LNG, has served a Termination Notice of Operation and Services Agreement to the latter on account of Adequate Assurance of Performance required by PLTL.
The dispute resolution under clause 37 of the Agreement, has commenced amongst both parties to resolve the issue of adequate assurance of performance security amicably within 90 days from the time dispute resolution clause was invoked. During the negotiation phase, PGPC will continue to provide storage and gasification services and PLTL will continue to make payments. Ratings continue to be on ‘Rating Watch-Developing’ status pending the outcome of the dispute resolution matter.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Category: General Business News