S&P nips Pakistan Water

S&P said it lowered its ratings on Pakistan Water and Power Development Authority (Wapda) and its senior unsecured notes to CCC+ from B-.

This downgrade follows a similar action on Pakistan’s sovereign ratings on Thursday, the agency said.

“We believe Wapda's creditworthiness will remain closely tied with that of the government of Pakistan. A significant portion of the company's debt is from the government, guaranteed by the state, or directly borrowed by the government before it is on-lent to Wapda.

“The government closely oversees the operations of Wapda. It also defines the company's strategies, including its investments and borrowings. In addition, the government appoints the company's chairman and key management team,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.