Press Release

VIS Reaffirms Entity Ratings of LSE Financial Services Limited

Karachi, November 5, 2019: 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 further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Ms. Maham Qasim at 042-35723411-13.



Javed Callea
Advisor

Applicable rating criterion: Non-Bank Financial Companies (Oct 2017)
https://www.vis.com.pk/kc-meth.aspx

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright November 05, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.