Karachi, November 29, 2021 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR3++’ to FDM Capital Securities (Private) Limited (FDMCSPL). Outlook on the assigned rating is ‘Stable’. The rating signifies sound external control, whereas client relationship, compliance and risk management, regulatory requirements, internal controls, financial management, and HR and infrastructure are considered adequate.
Rating takes note of the company’s adequate regulatory requirements and supervision framework. Inclusion of more independent and certified members in the board may enhance the governance levels. Client relationship and fair play is also considered adequate, availability of client servicing tools may be considered for enhanced visibility and greater customer satisfaction.
Rating also takes note of sound internal control framework. However, inclusion of certain policies may be considered for greater internal controls while external control framework maybe strengthened through enhancing disclosure levels. Compliance and risk management are adequate; segregation of risk and compliance would further amplify the scope of the company’s existing credit policy. HR and infrastructure is also adequate, with full integration of the company’s ERP platform; meanwhile, geographical diversification would provide stability to the company’s path of growth.
Assessment of financial profile indicates improvement in profitability on the back of increase in core income during FY21. The company’s financial indicators reflect a sound liquidity position along with low gearing and leverage ratios and improvement in equity base. While the company’s overall financial management is adequate, augmenting the revenue base together while keeping cost to income ratio and maintaining low gearing levels will be important for the rating going forward.
FDMCSPL is a private limited company and is principally engaged in brokerage of shares in ready and future market to local retail clients. It holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading and Self-Clearing Services.
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/