Fitch Ratings – Hong Kong – 24 May 2021: Fitch Ratings has assigned Pakistan Water and Power Development Authority ‘s (WAPDA, B-/Stable) proposed US dollar senior unsecured notes a rating of ‘B-‘.
The proceeds of the proposed notes will be used to finance or refinance eligible green projects.
KEY RATING DRIVERS
The proposed notes will be direct, unconditional, unsubordinated and unsecured obligations of the issuer and will rank pari passu with its present and future unsubordinated and unsecured obligations.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Positive rating action on WAPDA’s Issuer Default Rating would result in similar rating action on the proposed notes.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative rating action on WAPDA’s Issuer Default Rating would result in similar rating action on the proposed notes.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from ‘AAA’ to ‘D’. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of ‘3’. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity.
