VIS Maintains ER Of SRL

VIS Credit Rating Company Limited has maintained the entity ratings of Shajar Roads Limited at single A/A-two. The medium to long-term rating of 'A' denotes good credit quality coupled with adequate protection factors

KARACHI, (UrduPoint / Pakistan Point News - 24th Nov, 2020 ) :VIS Credit Rating Company Limited has maintained the entity ratings of Shajar Roads Limited at single A/A-two. The medium to long-term rating of 'A' denotes good credit quality coupled with adequate protection factors.

The short-term rating of 'A-2' denotes good certainty of timely payments. Liquidity factors and company fundamentals are considered sound.Outlook on the assigned rating has been revised from 'rating watch-developing' status to 'stable' in view of attainment of financial close and commencement of construction work. The previous ratings action was announced on Sept. 25, 2019, said release on Tuesday.

SRL was established as a public limited (unlisted) company to undertake the dualization and oversee management and maintenance of the existing 43km Sheikhupura - Gujranwala Road under the Design, Build, Finance, Operate, and Transfer arrangement for the duration of the concession period.

The company was incorporated by a consortium of infrastructure development companies, namely Niaz Muhammad Khan & Brothers, Habib Construction Services, and Deokjae Construction Company Pakistan.

The company has entered into a concession with Government of Punjab for a period of 25 years. The project is being established under the Public Private Partnership regime, with one of the sponsors, HCS, acting as the Engineering, Procurement & Construction Contractor of the company.

The financial close was initially planned for March 2018. However, due to repeated delays in the finalization and acquisition of project site License Agreement, the financial close was achieved on August 8, 2020.