Karachi, April 13, 2022 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3+’ to Aba Ali Habib Securities (Private) Limited (AAHSPL). The assigned rating denotes adequate fiduciary standards. Outlook on the assigned rating is ‘Stable’. The rating signifies sound internal controls and client services while ownership and governance and business and financial sustainability are considered adequate.
Assigned rating takes into account Company’s ownership and governance framework, represented by an adequate board size of six members along with independent representation and formation of board committees. The rating also takes note of the Company’s sound internal control framework which may be further strengthened through enhancing the scope of policies and procedures and exercising periodic review of the same. Furthermore, overall relationship with customers is considered sound with client facilitation tools and investor grievance procedures in place.
Assessment of financial profile indicates significant improvement in revenue and profitability in FY21, largely supported by re-measurement gains on securities and increase in brokerage income. As a result of increase in core income coupled with cost rationalization, cost to income ratio of the company improved. Market risk exposure stands reduced on account of low proprietary trading during FY21. In line, capitalization indicators depict improvement. Liquidity profile is considered sound providing ample coverage to liabilities. Going forward, diversity in revenue streams, operational efficiency together with managing market risk within acceptable levels and maintaining low gearing and leverage will remain important for rating.
AAHSPL is a private limited company offering brokerage of shares in ready and future market, stocks, securities research and other related services to both retail and foreign intuitional clients. The company holds a Trading Right Entitlement Certificate (TREC) for Trading and Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/