December 12, 2018 (MLN): JCR-VIS Credit Rating Company Limited 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).
Outlook on the assigned ratings is ‘Stable’.
According to the rating agency, the medium to long-term rating of ‘A’ denotes good credit quality with adequate protection factors.
The short-term rating of ‘A-1’ denotes high certainty of timely payment coupled with good company fundamental and liquidity factors.
As per JCR-VIS, 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.
The ratings also derive comfort from conventional investment policy, sound capital structure, low borrowings and strong liquidity profile.
Ratings are dependent upon maintenance of prudent investment and risk profile of the company with sound liquidity, going forward.
