Fitch Ratings assigns WAPDA’s USD Notes 'B-' rating

Fitch Ratings has assigned Pakistan’s Water and Power Development Authority's (WAPDA, B-/Stable) proposed US dollar senior unsecured notes a rating of 'B-'.

“The proceeds of the proposed notes will be used to finance or refinance eligible green projects,” said Fitch in a statement.

The Water and Power Development Authority has hired banks to arrange investor calls from Monday for the issuance of US dollar-denominated green bonds.

JPMorgan, Deutsche Bank, Standard Chartered, and Habib Bank were hired to arrange the planned benchmark issuance of seven-year or 10-year bonds subject to market conditions, the investor's note showed.

Back in March, Fitch Ratings assigned WAPDA first-time long-term foreign and local-currency issuer default ratings of "B-" with a stable outlook.

Fitch Ratings in its report stated that WAPDA is a hydroelectric-oriented power-generation company, wholly owned by the Government of Pakistan (B-/Stable), with the public policy mission of executing the unified and coordinated development of the country's water and power resources.

The company's ratings were based on its hydroelectric business, rather than the water and finance segments, as the hydroelectric unit is it's only regulated business that engages in commercial activity; the water and finance segments are funded by government aid and grants.

Fitch Ratings states that the Wapda was established under the WAPDA Act with parastatal status and is wholly owned by the Government of Pakistan, which maintains tight control of the company.