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Lahore, February 27, 2018 (PPI-OT): The ratings reflect sustained operations of Engro Elengy Terminal (Private) Limited (EETPL). The business profile of EETPL is strong, emanating from GoP’s commitment to manage prevailing energy crises in the country by way of imported LNG. Thus, a sizable and recurring stream of income is ensured. SSGC, the sole intermediary (rated “A+”), has demonstrated timely payments against committed purchases despite challenges. Additionally, Stand-By Letter of Credit, covering capacity payments for six months provides comfort.
Stable stream of revenue leads to build up of surplus cash, which after making committed payments to lenders would be distributed to sponsors regularly, as per policy, going forward. However, Corporate Guarantee from Engro Corporation soothes financial risk. The ratings take significant support from EETPL’s association with Engro Corporation Limited, which has demonstrated financial strength. The ratings remain dependent on smooth operations of the terminal, and conduct of SSGC with reference to the timely payments to EETPL. Meanwhile, debt service coverages and other financial related metrics must remain strong.
For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com