Fitch Ratings has assigned Pakistan’s Water and Power Development Authority’s (WAPDA, B-/Stable) proposed US dollar senior unsecured notes a rating of ‘B-‘.
The rating agency stated that the proceeds of the proposed notes will be used to finance or refinance eligible green projects. The proposed notes will be the direct, unconditional, unsubordinated, and unsecured obligations of the issuer, and will rank pari passu with its present and future unsubordinated and unsecured obligations.
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The positive rating action on the WAPDA’s issuer default rating will result in a similar rating action on the proposed notes. A negative rating action on the WAPDA’s issuer default rating will result in a similar rating action on the proposed notes, it added.
The rating agency mentioned 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.
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The complete span of the best-case and worst-case scenario credit ratings for all the rating categories ranges from ‘AAA’ to ‘D’.
The best-case and worst-case scenario credit ratings are based on historical performances.
