PACRA Maintains Instrument Rating of Liberty Power Tech Limited – Sukuk – Jan-11

Lahore, June 30, 2018 (PPI-OT): Liberty Power Limited (Liberty Power Tech) runs a 200MW power plant based on Residual Fuel Oil. The Company operates in the regulated power sector. It enjoys sovereign guarantee against receivables from power purchaser CPPA-G given adherence to agreed performance benchmarks. The Company’s operations and maintenance operator, Wartsila Pakistan (WPK), is a key source of comfort in managing the plant’s operations. The Company’s financial risk profile is largely dependent on repayment behaviour of the power purchaser.

The Company has been paying consistent dividends. Fuel supply risk is adequately covered as they procure from different suppliers with good credit terms; being managed since 2011. Liberty Power Tech continues to meet its availability (90%) and efficiency (45%) benchmarks. Nevertheless, strong internal cash generation and available working capital lines has helped it in managing its working capital requirements efficiently. The ratings draw comfort from the sponsors’ demonstrated support to the Company.

Upholding operational performance in line with agreed performance levels would remain a key rating driver. Improving, indeed aligning, the Company’s repayment behaviour with its financial profile would be ratings positive. Meanwhile, any significant increase in overdue receivables may impact the ratings.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425