On a standalone basis, IESCO’s operational performance against key parameters – T&D losses and Recovery Ratio-remains strong. PHOTO: FILE
The Pakistan Credit Rating Agency has assigned long-term entity rating of “A+” (Single A Plus) and short-term rating of “A1” (A One) to Islamabad Electric Supply Company Limited (IESCO). The ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong, said a press release.
The ratings of IESCO derive strength from ownership of the government through the Ministry of Water and Power. Given the strategic importance of the company to the economy, support from the government is expected if need arises. Majority of loans availed by the company are re-lent by the government. Meanwhile, flexible repayment terms extended by the government further provide comfort to the ratings.
On a standalone basis, IESCO’s operational performance against key parameters – T&D losses and Recovery Ratio-remains strong.
Supply deficit nature of industry and tight regulatory environment implies low business risk.
Published in The Express Tribune, January 23rd, 2013.
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