Credit ratings: PACRA assigns ‘A’ ratings to IESCO

ISLAMABAD: The Pakistan Credit Rating Agency (Pacra) assigned the Islamabad Electric Supply Company (IESCO) a long-term entity rating of ‘A+’ (single A plus) and a short-term rating of ‘A1’ (A one). According to the IESCO spokesperson, the ratings denoted a low expectation of credit risk and the capacity for timely repayments of financial commitments was considered strong. The ratings of IESCO derive strength from the ownership of Government of Pakistan through the Ministry of Water and Power. Given the strategic importance of the company to the economy, support from the government was expected if need arose. Majority of the loans availed by the company were re-lent by the government. Meanwhile, flexible repayment terms as extended by the state, further provided comfort to the ratings. On a standalone basis, IESCO’s operational performance against key parameters – transmission and distribution losses and recovery ratio – remained strong.

Published in The Express Tribune, February 6^th, 2013.

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