Press Release

VIS Reaffirms Entity Ratings of CSC Empowerment and Inclusion Programme (CEIP)

Karachi, April 23, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed 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 remains ‘Stable.’ Previous rating action was announced on February 22, 2024.

CSC Empowerment and Inclusion Programme 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). Its registered office is located at 319-4/D-1, Green Town, Lahore

The ratings assigned to CEIP reflect its resilience as a microfinance institution focused on socio-economic empowerment, particularly for women and youth in semi-urban Punjab. A sound system of checks and balances informs an adequate governance framework, with experienced leadership and a disciplined approach to credit risk. The Institution benefits from a structured loan approval process, strong risk mitigation practices, and a diversified product mix, which contribute to stable asset quality. CEIP's lending approach is predominantly group-based, leveraging social guarantees to minimize delinquency risks, while its digital transformation initiatives enhance operational efficiency and collection processes.

The Institution's cautious lending strategy, coupled with stringent onboarding and monitoring processes, has resulted in low non-performing loans and full provision coverage. Profitability remains stable, driven by net markup income and controlled expenditures, while operational self-sufficiency indicators underscore its ability to sustain operations independently. The planned expansion of branch network and diversification into Shariah-compliant products is expected to support future growth. The Institution maintains adequate liquidity and capitalization, supported by strong relationships with funding partners such as PMIC and PPAF, ensuring stable financial access.

Going forward, the ratings will be supported by CEIP's adherence to its prudent lending practices, sustained profitability, and successful execution of its expansion plans.

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%202024/NBFCs202003.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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