Islamabad (PR) – The Pakistan Credit Rating Agency (PACRA) 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.

The ratings of IESCO derive strength from ownership of Government of Pakistan (GoP) through Ministry of Water and Power. Given the strategic importance of the company to the economy, support from GoP is expected if need arises. Majority of loans availed by the company are re-lent by GoP. Meanwhile, flexible repayment terms as extended by GoP, 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 for IESCO.