Press Release
VIS Reaffirms Entity Ratings of Lahore Sialkot Motorway Infrastructure Management (Pvt.) Limited
Karachi, February 02, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Lahore Sialkot Motorway Infrastructure Management (Pvt.) Limited (LSMIML) at ‘A-/A2’ (Single A Minus/A Two). The medium to long-term rating of ‘A-’ denotes good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A2’ denotes good likelihood of timely repayment of short-term obligations with sound liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous ratings action was announced on January 14, 2025.
LSMIML is a Special Project Company (SPC) with its registered office in Rawalpindi, Punjab. The Company has entered into a 25-year concession agreement with the National Highway Authority (NHA) for the construction, operation, and maintenance of the Lahore–Sialkot Motorway (M-11) under a Public-Private Partnership (PPP) framework on a Build-Operate-Transfer (BOT) basis, in collaboration with the Frontier Works Organization (FWO). Under the concession arrangement, LSMIML, as the concessionaire, is responsible for toll collection as well as the overall management and maintenance of the motorway. The motorway became operational in March 2020 and serves as a key transport corridor between Lahore and Sialkot/Sambrial. The responsibility for operations and maintenance (O&M), which was initially handled by FWO, was transferred to LSMIML in September 2021, marking the Company’s transition to full operational control of the project.
The assigned ratings reflect the strategic importance of LSMIML under a public-private partnership (PPP) framework and the presence of strong government-backed sponsors. The project has achieved operational stability, with the motorway fully functional and maintenance responsibilities transitioned to the Company, supporting consistency in service delivery. Toll revenues have shown a gradual improving trend, aided by contractual toll escalations and expectations of enhanced connectivity from planned network extensions. However, the ratings take into account the weak standalone financial performance, continued operating losses, and stressed debt coverage, stemming from traffic levels remaining below initial feasibility assumptions and a high finance cost burden. Liquidity indicators remain tight, and the capital structure reflects erosion in equity due to continued losses, resulting in elevated leverage. The ratings are contingent on continued sponsor and government backing and the timely servicing of debt, with external support, if required.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Toll Roads
https://docs.vis.com.pk/docs/TollRoads_2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf