VIS Credit Rating Company Limited has reaffirmed the rating of triple A assigned to Sukuk issue of Rs 100 billion of Neelum Jhelum Hydropower Company (Private) Limited.
The medium to long-term rating of triple A denotes highest credit quality with negligible risk factors being only slightly more than risk-free Government of Pakistan’s debt. Outlook on the assigned rating is stable. The previous rating action was announced on January 02, 2019, said a press release on Tuesday.
The rating assigned to the Sukuk issue take into account unconditional and irrevocable first demand guarantee issued by the President of Pakistan on behalf of the Government, covering issue amount of the Sukuk along with profit payments. Government of Pakistan would immediately pay the entire called amount once the demand notice from the trustee is received. Ratings also incorporate strong financial muscle and implicit support from the parent entity, Water and Power Development Authority, in the form of equity injection and funding support.
The Sukuk is unlisted and privately placed 10-year tenor instrument with grace period of two years.—APP