Could 19, 2025 (MLN): VIS Credit score Score Firm Restricted (VIS) has reaffirmed entity rankings assigned to Yunus Power Restricted at ‘A+/A1’ (Single A Plus/A One).

The medium to long-term ranking of ‘A+’ displays good credit score high quality, safety elements are ample. Danger elements might differ with doable modifications within the financial system.

The short-term ranking of ‘A1’ signifies sturdy chance of well timed compensation of short-term obligations with wonderful liquidity elements.

Outlook on the assigned rankings is ‘Stable’. Earlier ranking motion was introduced on July 03, 2024.

YEL operates a 50MW wind energy plant comprising 20 Wind Turbine Mills (WTGs) of two.5MW era capability every, positioned within the Jhimpir-Hyderabad hall, Sindh.

The undertaking was developed at a complete price of USD 110.2 million and was financed by way of a debt-to-equity ratio of 80:20.

The Business Operations Date (CoD) was achieved in September 2016. YEL has a 20-year Power Buy Settlement (EPA) with Central Energy Buying Company (Assure) Restricted (CPPA-G), dated March 26, 2014.

The Engineering, Procurement and Building (EPC) was carried out on a turnkey foundation.

Operations and Upkeep (O&M) companies are being supplied by a consortium comprising NORDEX Pakistan (Personal) Restricted and Descon Engineering Restricted.

The O&M association is predicted to proceed till the complete compensation of undertaking debt.

Assigned rankings incorporate the enterprise danger profile of Pakistan’s renewable vitality sector, assessed as medium, supported by coverage initiatives, rising demand, and pure useful resource availability.

Sector progress is guided by the Different and Renewable Power Coverage 2019 and IGCEP 2047, emphasizing diversification by way of aggressive bidding and grid improvement.

Structural dangers persist as a result of regulatory uncertainty, technological modifications, and capital depth. Publicity to substitution danger and variable market dynamics additionally stay related.

Income visibility is supported by a long-term Power Buy Settlement with CPPA-G, backed by sovereign ensures.

Operational danger is mitigated by way of long-term O&M preparations with outlined availability thresholds, with compensation provisions in case of non-project occasions and curtailments.

Wind useful resource and seasonal variability stay current however are partially mitigated by site-specific assessments and historic efficiency.

Scores additionally incorporate sponsor power derived from YBG, a diversified enterprise group with operations throughout a number of sectors.

Assigned rankings additionally contemplate the monetary danger profile of the Firm, together with profitability supported by tariff indexation and previous offtake ranges, although impacted by seasonal wind variability and curtailments.

Margins mirror the consequences of capability issue fluctuations, with partial mitigation by way of non-project occasion compensation below the vitality buy settlement.

Capitalization profile signifies a declining leverage development, pushed by retained earnings and scheduled long-term debt repayments.

The debt portfolio includes long-term financing from native monetary establishments, with no short-term borrowings in place.

Operational wants are met by way of inner money flows. Liquidity indicators present some moderation as a result of dividend disbursements, although supported by short-term investments.

Debt protection stays aligned with tariff provisions, with compensation obligations structured as a part of the tariff framework.

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Posted on: 2025-05-19T15:18:38+05:00