Karachi, December 03, 2021 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Standard Capital Securities (Private) Limited (SCSPL). Assigned rating denotes sound management quality. Outlook on the assigned rating is ‘Stable’. The rating signifies strong client relationship and sound external framework. Compliance and risk management, HR and infrastructure, financial management, internal controls and regulatory requirements are considered adequate.
The assigned rating also takes into account the company’s strong client relationship supported by well-established and resourceful customer service and facilitation tools. The external control framework is sound however the same may be further strengthened through increased disclosure levels. On the governance front, enhancing the board size with independent representation may bode well with best practices as well as facilitate formation of independently represented board committees. The assigned rating also takes note of adequate internal control framework which may be strengthened by increasing the scope of internal policies and effective implementation of the same. HR and infrastructure and risk management may also be enhanced with a fully integrated ERP platform, formation of IT policy and establishment of independent risk management function.
Financial profile of the company reflects improved profitability on the back of higher operating profits and capital gains. Higher revenue combined with effective cost controls has improved operational efficiency on a timeline basis. Market risk of the company is elevated with higher quantum of short-term investments in relation to equity. Liquidity profile and capitalization indicators are considered adequate. Going forward, increasing market share, and augmentation of revenue streams will be important.
Managing market risk within reasonable levels together with low gearing levels will also remain important for rating. SCSPL is a private limited company holding 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/