AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, November 05, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of LSE Financial Services Limited (LSEFSL) at ‘A/A-1’ (Single A/A-One). The medium to long-term rating of ‘A’ denotes good credit quality with adequate protection factors. Moreover, the risk factors may vary with possible changes in economy. The short-term rating of ‘A-1’ denotes high certainty of timely payment coupled with good company fundamental and liquidity factors. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 31, 2018.
Ratings assigned to LSEFSL reflect the company’s low business risk appetite given its structured and unique business model coupled with increase in revenues stemming from income generated through investment in margin trading system as a result of higher interest rates. The ratings also derive comfort from conventional investment policy leading to cautious business selection, sound capital structure, debt free balance sheet and strong liquidity profile. However, given the clearly articulated business strategy, the ratings remain constraint on account of limited growth potential in recurring revenues. Going forward, the ratings will remain dependent on the company’s rental revenue management capability and overall occupancy levels.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/