The Pakistan Credit Rating Agency Limited
13-Feb-20
Analyst
Saadat Mirza
saadat.mirza@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | IPP | Jun-19
- Methodology | Correlation Between Long-Term And Short-Term Rating Scale | Jun-19
- Criteria | Rating Modifier | Jun-19
Related Research
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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.