PACRA Maintains Entity Ratings of Nishat Power Limited
Lahore, December 29, 2017 (PPI-OT):Nishat Power Limited runs a 200MW power plant. The company operates in the regulated power sector. It enjoys sovereign guarantee against receivables from power purchaser – NTDC – given adherence to agreed performance benchmarks. Nishat Power Limited, with in-house Operations and Maintenance (O and M), has a well-experienced team. While cost-savings are a likely outcome, any deviation from operational benchmarks may have its adverse implications on the company. The company’s financial risk profile is largely dependent on repayment behaviour of power purchaser.
In recent period, receivables including delayed payments interest witnessed an increase. Nevertheless, the company has been managing its working capital requirements via short-term borrowings. Plant has performed up to the mark with greater availability factor than of its set benchmark. The company’s conservative dividend pay-out provides further flexibility in financial management. Thus healthy profile of the company should help ameliorate its financial behaviour.
Upholding operational performance in line with agreed performance levels would remain a key rating driver. Meanwhile, any significant increase in overdue receivables, as a result of rising circular debt, may negatively impact the ratings.
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