VIS Reaffirms Entity Ratings of LSE Financial Services Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- December 21, 2021 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of LSE Financial Services Limited (LSEFSL) at 'A/A-1' (Single A/A-One). The medium to long-term rating of 'A' denotes good credit quality with adequate protection factors. Moreover, the risk factors may vary with possible changes in economy. The short-term rating of 'A-1' denotes high certainty of timely payment coupled with excellent liquidity factors and supported by good fundamentals protection factors. Outlook on the assigned ratings is 'Stable'. The previous rating action was announced on December 17, 2020.

Reaffirmation of entity ratings incorporates low business risk on account of unique business model. The company initiated certain business plan revisions, under NBFC license obtained in 2016, entailing development of financing portfolio including term financing together with development of credit department and related credit and operational policies and procedures; the impact of which is yet to be seen. LSE plans to mitigate the credit risk emanating from loan portfolio through limiting exposures to Government...