The Pakistan Credit Rating Agency Limited
16-Nov-23
Analyst
Anam Waqas Ghayour
anam.waqas@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-23
- Methodology | Independent Power Producer Rating | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Aug-23
Related Research
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PACRA Withdraws the Rating of K-Electric Limited | PPSTS-14 | PKR 5bln | Feb’23 | Redeemed
| Issuer | K-Electric Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 5000 mln |
| Issuance Date | 27-Feb-23 |
| Tenor | 0.5 Years |
| Redemption Date | 28-Aug-23 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (16-Nov-23 ) |
Previous (26-May-23 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
K-Electric Limited issued a rated, Privately Placed Sukuk (PPSTS-14) of PKR 5,000mln on 27-Feb-23. The tenor of the instrument was 6 months and carried a profit rate of 6MK+75bps. The
instrument has been repaid, and hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk has been redeemed on 28-Aug-23.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | PPSTS-14 | PKR 5bln | Feb-23.
About
the Entity
K-Electric, a vertically-integrated power utility, has been in operation for more than a century. The total installed capacity of K-Electric is 2,817MW, having an arrangement with National Grids and IPPs for 1,650+ MW. KES Power Limited held 66.4% share in K-Electric, while the Government of Pakistan owned 24.4%. There are certain developments happening at the key shareholder’s level of which details are in the public domain and are subject to assessment as and when materialized. Mr. Moonis Alvi, CEO is associated with the company since 2008. He is supported by an
experienced team.