Lahore, December 26, 2019 (PPI-OT): The rating of PPTFCs reflects an unconditional and irrevocable guarantee by the Government of Pakistan (GoP). The guarantee covers the payment of total outstanding amount of the PPTFCs and related profit component. GoP would pay the entire called amount immediately upon receiving a demand notice from the trustee.
The rating apart from a debt payment and guarantee mechanism recognizes WAPDA’s strategic importance as the major hydroelectric power supplier to the country (18% in overall electricity generation in FY19). WAPDA generated 27,196Gwh electricity in FY19. WAPDA expects to generate additional ~7,000Gwh by completion of new hydel projects in next five years.
WHE’s financial profile draws comfort from strong cash flows. However, it remains dependent on repayment behavior of power purchaser. Continued compliance with the predefined covenants of PPTFC, including maintenance of DPA would remain critical.The watch captures that the financial statements of the issuer for FY19 are being audited and will be approved in the next month. This will be followed by the process for the approval of financial statements for the ongoing financial year.
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
Category: General Business News