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The Pakistan Credit Rating Agency Limited
Press Release

Date
13-Feb-20

Analyst
Saadat Mirza
saadat.mirza@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Withdraws Entity Ratings of Nishat Chunian Power Limited

Rating Type Entity
Current
(13-Feb-20)
Previous
(16-Sep-19)
Action Withdraw Maintain
Long Term - A+
Short Term - A1
Outlook - Stable
Rating Watch - -

Subsequent to the decision of the management of Nishat Chunian Power Limited to discontinue the ratings, PACRA withdraws the Entity Ratings of Nishat Chunian Power Limited with immediate effect.

About the Entity
Nishat Chunian Power was established in 2007 as an independent power producer (IPP) for the purpose of electricity generation. It began commercial operations in July 2010. Nishat Chunian Power is a subsidiary of Nishat Chunian Limited and is listed on Pakistan Stock Exchanges.Nishat Chunian Limited holds ~51% stake in the company – which in turn is equally owned by Nishat Group and Nishat Chunian Group, rest of shareholding lies with the Financial Institutions (26.51%), General Public (17.76%) and others (4.66%). Nishat Chunian Group is a leading conglomerate with interests in textile, energy, and entertainment sector.
Nishat Chunian Power's project cost comprised 20% equity and 80% debt. Long-term debt carries mark-up at the rate of 3M Kibor + 300bps, payable on quarterly basis. The outstanding principal at end-Jun19, will be repaid in four quarterly installments.
The Board of Directors (BoD) comprises nine members. One board member is a representative from Nishat Chunian Limited and one board member is a nominee from Allied Bank Limited. All the board members are seasoned professionals having interests in various sectors of the industry. Mr. Farrukh Ifzal, previously serving as the Managing Director, replaced Mr. Shahzad Saleem, spearheading the company since incorporation, as the CEO during the 4QFY19. The management team comprises qualified professionals possessing sufficient experience in power sector.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.