Press Release
VIS Upgrades Entity Ratings to LSE Ventures Limited
Karachi, July 07, 2025: VIS Credit Rating Company Limited (‘VIS’) has upgraded entity ratings of LSE Ventures Limited (‘LSEVL’ or the ‘Company’) from ‘A+/A1’ (Single A Plus/A One) to ‘AA-/A1’ (Double A Minus/A One). Medium to long term rating of ‘AA-’ indicates high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on May 14, 2025.
The ratings reflects the improvement in LSE Ventures' credit risk profile following the implementation of a more conservative investment policy, as recently approved by the Company’s Board of Directors. The revised investment framework places greater emphasis on portfolio quality, aiming to enhance the overall resilience and creditworthiness of the Company’s asset base.
Under the new policy, LSE Ventures has committed to allocating a maximum of 30% of its portfolio to “A+” rated exposures, while ensuring that no less than 70% is concentrated in “AA” band investments. This strategic reallocation significantly reduces exposure to moderate-risk assets and shifts the portfolio toward higher-grade, lower-risk instruments, thereby strengthening the credit risk buffer.
The Company’s existing portfolio further supports this conservative stance, with holdings in financially robust and well-established entities such as PACRA, CDC, NCCPL, and PGPC. These institutions possess strong credit fundamentals and have a track record of generating stable dividend income, contributing to the Company’s earnings predictability and financial stability.
The ratings are dependent upon maintaining the high-quality asset allocation strategy and the retention of dependable, income-generating investments to maintain LSE Ventures’ asset base firmly within the high-grade credit spectrum. The ratings also take note of the proposed enhanced asset quality and risk mitigation strategy being adopted by the Company.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf