Press Release

JCR-VIS Upgrades Short-Term Rating of LSE Financial Services Limited

Karachi, December 12, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded short-term rating of LSE Financial Services Limited (LSEFSL) from ‘A-2’ (A-Two) to 'A-1' (A-One) while maintaining the medium to long-term entity rating at ‘A’ (Single A). 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 good company fundamental and liquidity factors. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on August 31, 2017.

Ratings assigned to LSEFSL reflect the company’s low business risk profile given its business model wherein relatively stable revenues are emanating from rental income and return on investment in associates. These are supported by revenues stemming from higher investment in margin trading system. The ratings also derive comfort from conventional investment policy, sound capital structure, low borrowings and strong liquidity profile. Revaluation gain recognition on investment property has contributed towards increase in equity. Ratings are dependent upon maintenance of prudent investment and risk profile of the company with sound liquidity, going forward.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Javed Callea

Applicable rating criterion: Non-Bank Financial Companies (October 2017)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited