Moody’s Investors Service (Moody’s) has assigned corporate family rating (CFR) of B3 to Water and Power Development Authority (Wapda).
Moody’s also assigned a stable outlook to the rating. “Wapda’s B3 CFR is primarily driven by its baseline credit assessment (BCA) of b3, and Moody’s expectation of a very high likelihood of support from, and a very high level of dependence on, the government of Pakistan (B3 stable) in times of need, under Moody’s joint-default analysis approach for government-related issuers.
Moody’s Vice President and Senior Credit Officer says that “Wapda’s B3 rating reflects its dominant position in supplying hydro-power services and developing water infrastructure in Pakistan, as well as the recurring financial support it receives from the Pakistani government”
“At the same time, the BCA is constrained by the company’s weak financial profile due to its sizable hydro-power capacity expansion spending, and the delays in collecting hydro-power generation tariffs,” commented Kan.
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