ISLAMABAD: 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 ratings agency stated that the proceeds of the proposed notes will be used to finance or refinance eligible green projects.
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. Positive rating action on WAPDA's issuer default rating would result in similar rating action on the proposed notes.
Negative rating action on WAPDA's issuer default rating would result in similar rating action on the proposed notes, it added.
The Ratings Agency stated that 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.