Lahore, February 13, 2018 (PPI-OT): The rating reflects OLP’s augmented market position and continuous support by ORIX (Japan). The Company’s operations are supported by quality risk management framework and advanced technology infrastructure. The management, while exploring various options to garner future growth, continues to emphasize on improved spreads, increased geographical outreach and diversification into different businesses by utilizing the capital available to the Company by offloading some of its strategic investments. OLP earning book largely maintained during FY17.
Company’s main source of funding remains bank borrowing and CoDs, OLP maintains a fairly healthy funding structure. OLP’S capital structure benefited by the issuance of right shares during 1QFY18. Further utilization of Modaraba business will help the Company to perform better in future. The paradigm change would emerge as OLP expand its operational horizon with a new license as Investment Finance Company. The ratings are dependent on the Company’s ability to maintain its market position while generating sound profitability. The ratings also depend upon keeping its financial profile intact. Any significant change in its risk profile may adversely impact the ratings.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425