Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of CSC Empowerment and Inclusion Programme (CEIP) at 'BBB-/A3'. The medium to long-term rating of 'BBB-' indicates adequate credit quality, with reasonable and sufficient protection factors, while the short-term rating of 'A3' highlights a fair likelihood of timely repayment of short-term obligations. The outlook on the ratings remains stable. The previous rating action was announced on February 22, 2024.

CEIP, a public limited company, was established as a non-governmental organization in 1989. Its mission is to promote socio-economic empowerment among women and youth in semi-urban areas of Punjab. In 2016, CEIP received a license to operate as a Non-Bank Microfinance Company, enabling it to expand its microfinance services. The organization provides development services to marginalized communities in Punjab, with funding from the Pakistan Poverty Alleviation Fund and the Pakistan Microfinance Investment Company. CEIP's registered office is located in Lahore.

The reaffirmed ratings reflect CEIP's resilience as a microfinance institution, particularly its focus on socio-economic empowerment for women and youth. The organization has a robust governance framework, experienced leadership, and a disciplined approach to credit risk. CEIP benefits from a structured loan approval process and strong risk mitigation practices. Its lending approach is predominantly group-based, leveraging social guarantees to minimize delinquency risks.

CEIP's cautious lending strategy and stringent monitoring processes have resulted in low non-performing loans. The institution's profitability remains stable, driven by net markup income and controlled expenditures. CEIP's operational self-sufficiency indicates its ability to sustain operations independently. Future growth is expected through the planned expansion of its branch network and diversification into Shariah-compliant products.

CEIP maintains adequate liquidity and capitalization, supported by strong relationships with funding partners like PMIC and PPAF. This ensures stable financial access, supporting the institution's prudent lending practices and expansion plans. The reaffirmed ratings underscore CEIP's commitment to its mission and its ability to adapt to changing economic conditions.