VIS Reaffirms Ratings for Malir Expressway Limited

Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Malir Expressway Limited (MEL) at ‘A-/A2’.

According to VIS Credit Rating Company Limited, the medium to long-term rating of ‘A-‘ signifies good credit quality with adequate protection factors, while the short-term rating of ‘A2’ indicates a good likelihood of timely repayment of short-term obligations. The outlook on the assigned ratings remains ‘Stable’, with the previous rating action announced on October 12, 2023.

MEL, an unlisted public limited company established in 2020, was formed to construct the Malir Expressway, a six-lane dual carriageway project spanning approximately 38.75 kilometers. The project is developed through a Public-Private Partnership with the Government of Sindh and follows the Design-Build-Finance-Operate-Transfer model. Phase-01 is expected to be operational by the end of 2024, while Phase 2 is anticipated to complete by June 2025 due to design modifications.

The ratings reflect the sound profile of MEL’s shareholders and the robust support from the Government of Sindh. Key agreements, including the EPC contract, ensure timely project completion, while provisions for performance securities and a cost-adjustment mechanism contribute to financial stability. The ratings are contingent upon the project’s timely completion and ongoing support from the Government of Sindh and sponsors as outlined in the Concession Agreement.

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