VIS Maintains Strong Ratings for Artistic Energy with Stable Outlook

Lahore, VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings for Artistic Energy (Pvt.) Limited (AEPL) at 'A+/A-1', indicating robust credit quality and financial health. The ratings reflect a stable economic outlook with high certainty of timely payments, backed by strong liquidity and protection factors.

According to VIS Credit Rating Company Limited, AEPL, a wholly-owned subsidiary of Artistic Milliners (Pvt.) Limited, benefits from a solid backing by its parent company and strategic operational agreements such as long-term Operations and Maintenance (O and M) contracts with experienced operators and a reliable Energy Purchase Agreement (EPA) with the CPPA. These arrangements help mitigate risks associated with off-take and provide a buffer against potential fluctuations in wind energy production.

Despite experiencing a dip in profitability in fiscal year 2023 due to government-imposed power curtailments and variable wind conditions, AEPL's performance has improved in the current year with an uptick in offtake. The company has managed to maintain a sound liquidity profile, with timely receivables collection from CPPA and adequate cash flow coverage. Capitalization has also improved due to equity expansion and reduced debt levels.

VIS emphasizes that the continuation of AEPL’s ratings at this level depends on the company's ongoing ability to manage business and financial risks effectively, maintaining its operational and financial metrics within established benchmarks.