Press Release
VIS Reaffirms Rating of Term Finance Certificate (TFC- 1) of OLP Financial Services Pakistan limited
Karachi, September 11, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed rating at ‘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 previous rating action was announced on February 26, 2026. 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.
The ratings of OLPFSL reflect its strong credit profile, underpinned by a robust governance framework, established market position, and strong sponsor support from ORIX Corporation, Japan. The Company benefits from extensive experience in SME-focused financing, a diversified business platform, and disciplined risk management practices, including prudent underwriting and portfolio monitoring practices. Asset quality has remained sound despite continued portfolio growth and a gradual shift towards finance and loan products. Profitability remained resilient, supported by portfolio expansion, improved funding costs, and a stable spread, although earnings continue to face pressure from lower asset yields and a changing interest rate environment. Capitalization remains adequate due to internal capital generation, while higher leverage accompanying portfolio expansion warrants continued monitoring. Liquidity is considered satisfactory, supported by a diversified funding base, greater reliance on longer-tenor borrowings, and a positive maturity profile. Going forward, the ratings will remain sensitive to the Company’s ability to sustain asset quality, preserve profitability, maintain adequate liquidity, and manage leverage as the financing portfolio expands.
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 Finance Company Rating
https://docs.vis.com.pk/Methodologies-2025/NBFC-Nov-2025.pdf
Scale Translation
https://docs.vis.com.pk/Methodologies-2026/Scale-Translation-2026.pdf
Instrument Ratings
https://docs.vis.com.pk/Methodologies-2026/IRM-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf