VIS Upgrades ER Of ZPL

KARACHI, (UrduPoint / Pakistan Point News - 26th Nov, 2020 ) :VIS Credit Rating Company Limited has upgraded entity ratings of Zephyr Power (Pvt.) Limited from single A minus/A-two to single A/A-Two. Long-term rating of 'A' reflects good credit quality, adequate protection factors.

Risk factors may vary with possible changes in the economy. Short-term rating of 'A-2' indicates good certainty of timely payment and sound liquidity factors. Access to capital markets is good while risk factors are small. Outlook on the assigned ratings is 'Stable'. Previous rating was announced on August 26, 2019, said release on Thursday.

ZPL operates a 50 megawatt wind-power plant (25 Wind Turbine Generators of 2 MW each) situated in Gharo area, Thatta, Sindh. Commencement of operations documents was achieved in March 2019 while takeover by management from EPC contractor was completed in October 2019.

Ratings upgrade takes into account ZPL's demonstration of sound track record of successfully running plant operations since commencement of operations , low business risk and improving financial profile as evident from healthy cash flow generation, sound debt coverage metrics and reduction in leverage indicators.

Ratings also take into account the strong sponsor profile which comprises foreign investment by a DFI (wholly owned by UK Government) and other local equity shareholders. Further, presence of Debt Service Reserve Account and CPPA-G's commitment of timely payment of receivables for debt servicing continues to provide comfort to the ratings.