Press Release
VIS Assigns Initial Entity Ratings to OLP Financial Services Pakistan Limited
Karachi, September 11, 2025: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘AAA/A1+’ (Triple A/A One Plus) to OLP Financial Services Pakistan Limited (‘OLPFSL’ or the ‘Company’). Medium to long term rating of ‘AAA’ indicates highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short term rating of ‘A1+’ indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable.’
OLPFSL was incorporated in July 1986 as a joint venture between ORIX Corporation (ORIX) and local investors. The Company is listed on the Pakistan Stock Exchange (PSX) and has a nationwide presence through 33 branches across 31 cities. With nearly four decades of operational experience, OLPFSL delivers a comprehensive range of financial products and services to a diverse customer base. The Company places strategic emphasis on the Small and Medium Enterprises (SME) sector, facilitating business expansion and contributing to employment generation and economic growth in Pakistan.
ORIX is a global integrated financial services group headquartered in Tokyo, Japan, which holds approximately 49.6% of the Company’s shares. It is listed on both the Tokyo Stock Exchange and the New York Stock Exchange. With operations in 28 countries and regions, the sponsor offers a diversified range of services to corporate and retail customers.
OLPFSL’s ratings are anchored by the strength of its strategic sponsor, which holds an equity stake, has significant board representation, and currently carries a ‘AA’ issuer rating from The Japan Credit Rating Agency (JCR). This underscores its strong financial profile and support capacity. The sponsor’s global presence, financial depth, and governance oversight provide the Company with a distinct competitive edge, supporting credibility, risk discipline, and long-term business stability. Leveraging this backing, OLPFSL has built a leading position in Pakistan’s leasing sector, particularly in SME and vehicle financing, supported by prudent credit policies, repeat clientele, and sectoral diversification that mitigate concentration risks.
Asset quality indicators remain sound, with negligible levels of non-performing exposures and a well-diversified portfolio across sectors, which reduces concentration risk. The Company maintains well-diversified funding sources, including bank borrowings, Certificates of Deposit (CODs), and Privately Placed Term Finance Certificates (PPTFCs). Liquidity has improved, supported by a healthy current ratio and stronger coverage of liabilities through high liquid assets.
Governance remains a key strength, with sponsor oversight, a well-represented board, and seasoned management ensuring operational resilience. Looking ahead, the key challenge will be to sustain profitability amid a declining interest rate environment, which may exert downward pressure on portfolio yields and growth.
For further information on this ratings 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%202024/NBFCs202003.pdf
Scale Translation
https://docs.vis.com.pk/Methodologies-2025/Scale-translation-Jan-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf