The Pakistan Credit Rating Agency (Pacra) has maintained the long-term entity rating of 'AA+' (Double A plus) and short-term rating of 'Al+' (A one plus) of Hub Power Company Limited. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings reflect the company's consistent performance track record, reflected in high availability and adequate efficiency. The ratings recognise stable cashflows stream as guaranteed by GoP under the Power Purchase Agreement (PPA), subject to adherence to agreed upon performance benchmarks. Meanwhile, the weak financial discipline of the sole customer, Water and Power Development Authority, is a key consideration. Hubco's association with a major international private power producer -International Power Plc, as a key shareholder and O&M operator - is also a key rating factor. Narowal project witnessed significant delays in commissioning, and is approaching the final deadline allowed under PPA.-PR
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