Press Release
VIS Maintains Entity Ratings of CSC Empowerment and Inclusion Programme (CEIP)
Karachi, May 19, 2026: VIS Credit Rating Company Limited (VIS) maintains entity ratings of CSC Empowerment and Inclusion Programme (‘CEIP’ or the ‘Institution’) at 'BBB-/A3' (Triple B Minus/A Three). Medium to long term rating of 'BBB-' indicates adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short term rating of 'A3' indicates fair likelihood of timely repayment of short-term obligations with satisfactory liquidity factors. Outlook on the assigned ratings changes from ‘Stable’ to ‘Positive’. Previous rating action was announced on April 23, 2025.
CEIP is a Public Limited Company, incorporated as a non-governmental organization (NGO) in 1989 to promote the socio-economic empowerment of women and youth in semi-urban areas of Punjab. The Institution was granted a license to operate as a Non-Bank Microfinance Company (NBFC) in 2016, enabling it to expand its microfinance initiatives. CEIP provides integrated development services to marginalized communities across Punjab, with funding support from the Pakistan Poverty Alleviation Fund (PPAF) and the Pakistan Microfinance Investment Company (PMIC). CEIP partnered with PPAF in 2001 and successfully completed twelve financial intermediation phases before transitioning to PMIC in March 2017, with which it has since completed three financial phases. The Institution remains committed to facilitating financial inclusion through sustainable partnerships and ongoing collaboration with key financial stakeholders.
The assigned ratings to CEIP reflect its presence in the non-bank microfinance segment, supported by long-standing partnerships with key development finance institutions. A ‘positive’ outlook has been assigned given CEIP’s improving financial profile, characterized by enhanced profitability, strengthening capitalization, and sustained operational self-sufficiency, supported also by its tax-exempt status. Asset quality indicators have historically remained sound and have shown further notable improvement, supported by prudent underwriting practices, focus on existing borrowers, and effective verification mechanisms. The predominantly group-based lending model further supports repayment behavior.
Liquidity remains adequate, underpinned by available liquid assets and continued access to funding lines. However, reliance on borrowings, particularly from a limited number of counterparties, presents concentration risk and a cost sensitive funding structure. By securing funding from an International Investor and a local bank, CEIP has diversified its funding base. Limited recovery avenues in case of default, combined with rigid funding obligations, can pressure liquidity if collections weaken. Governance mechanisms are considered adequate, with an experienced board and management team; however, the composition of board committees presents some deviations from best practices with an absence of an Independent Chair.
The evolving product mix, including a gradual shift toward Shariah-compliant financing, and ongoing digitization initiatives are expected to support operational efficiency and outreach. The ratings are sensitive to sustaining asset quality, and further business growth translating to enhanced profitability and capital buffers, achieving diversification of funding sources, as well as continued adherence to best practices in governance.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Non-Bank Financial Companies
https://docs.vis.com.pk/Methodologies-2025/NBFC-Nov-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf