Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Indus Wind Energy Limited at ‘A/A-2’, reflecting a stable and secure investment profile, with consistent performance indicators and sound financial practices.

According to VIS Credit Rating Company Limited, Indus Wind Energy, a subsidiary of Indus Dyeing and Manufacturing Company Limited, operates a significant 50MW wind-power project in Thatta, Sindh. Since beginning commercial operations in March 2022, the project has navigated initial delays due to the pandemic and established a robust operational framework. The company’s long-term Energy Purchase Agreement with the Central Power Purchasing Agency assures reliable revenue streams, with additional financial protections built into the agreement to mitigate default risks and ensure profit stability.

The reaffirmation of the ‘A’ ratings underscores the company’s adequate protection factors against economic changes and its capability for timely repayment of short-term obligations. Despite challenges related to wind variability and high gearing due to an initial 80:20 debt-to-equity financing structure, comprehensive risk management strategies and contractual safeguards have provided a stable foundation for ongoing operations and financial commitments.