Press Release
VIS Assigns Initial Rating to Term Finance Certificate (TFC) of OLP Financial Services Pakistan limited
Karachi, February 26, 2026: VIS Credit Rating Company Limited (VIS) has assigned an initial rating of ‘AAA’ (Triple A) to the Term Finance Certificate-1 (TFC-1) of OLP Financial Services Pakistan Limited’s (‘OLPFSL’ or the ‘Company’). The 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. The entity rating of OLPFSL is ‘AAA/A1+’ (‘Triple A/A One Plus’) with a ‘Stable’ outlook.
The Privately Placed Term Finance Certificate (TFC) is a five-year instrument issued with a total issue size of PKR 3.0bn. The issue date of the TFC was December 30, 2021, and it is scheduled to mature on December 30, 2026. The principal amount is to be redeemed on a quarterly basis after a grace period of one year, and profit payments are also scheduled quarterly. The profit rate is set at three months KIBOR plus 80 basis points per annum. The security structure includes, without limitation, an exclusive charge on specific leased and financed assets along with related receivables, subject to the requisite margin, as well as any other security that may be required by Mandated Lead Advisor & Arranger (MLAA). The trustee for the issue is Pak Oman Investment Company Limited.
OLP Financial Services Pakistan Limited’s (‘OLPFSL’ or the ‘Company’) 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.
Applicable Rating Criteria:
Non-Bank Finance Company Rating
https://docs.vis.com.pk/Methodologies-2025/NBFC-Nov-2025.pdf
Scale Translation
https://docs.vis.com.pk/Methodologies-2025/Scale-translation-Jan-2025.pdf
Instrument Ratings
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf