FLASHNEWS:

Atlas Solar Limited Receives Maintained Ratings from VIS, Outlook Upgraded to Positive

Karachi: VIS Credit Rating Company Limited has maintained the entity ratings of Atlas Solar Limited at 'A/A2' with a revised outlook from 'Stable' to 'Positive'. This reflects good credit quality and a solid likelihood of timely repayment of short-term obligations.

According to VIS Credit Rating Company Limited, the previous rating action was announced on December 26, 2023.

Atlas Solar Limited, incorporated in September 2014, operates a 100 MW solar power plant. The company, primarily owned by Atlas Power Limited, is part of the Atlas Group. It achieved commercial operations on April 14, 2022, and holds a generation license from the National Electric Power Regulatory Authority valid until April 13, 2047. The company's registered office is in Lahore, while its facility is located in District Layyah, Punjab.

The renewable energy sector's medium-to-low business risk profile, marked by limited economic cyclicality exposure and long-term Energy Purchase Agreements, supports the ratings. The sector's challenges include its capital-intensive nature and regulatory compliance, but these are countered by the sponsor's diversified interests and financial resilience. The improved financial risk profile of Atlas Solar Limited, characterized by enhanced profitability and liquidity metrics, underpins the positive outlook. The company benefits from favorable tariff mechanisms and a cash conversion cycle that reduces exposure to circular debt, contributing to its robust coverage profile.