Karachi: VIS Credit Rating Company Ltd. has reaffirmed the entity ratings of Growth Securities (Private) Limited (GSPL) at ‘A-/A-2’ for long-term and short-term creditworthiness, respectively, adjusting the outlook from ‘Negative’ to ‘Stable’. This change reflects the company’s improved profitability and effective management amid favorable market conditions.

According to VIS Credit Rating Company Limited, the revision in GSPL’s rating outlook is a testament to the company’s solid financial performance, primarily driven by increased income from its ready-future business and brokerage commissions. This improvement comes in the context of heightened market activity and generally favorable trading conditions, which have also bolstered operational efficiencies despite high costs.

Founded in 2005 under the Companies Act 2017, GSPL specializes in ready-future arbitrage trading and provides equity brokerage services to domestic clients. It is registered with the Securities and Exchange Commission of Pakistan and holds a Trading Rights Entitlement Certificate (TREC) from the Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. The company’s external auditors, Baker Tilly Mehmood Idrees Qamar, are ranked in category ‘A’ by the State Bank of Pakistan.

The report from VIS highlights that GSPL’s market risk remains at a moderate level, supported by a strong liquidity and capitalization profile characterized by a significant amount of liquid assets and an unleveraged balance sheet. The ongoing support through sponsor loans is crucial, with continued availability deemed important from a ratings perspective.

Looking ahead, VIS notes the importance of GSPL enhancing its client base to boost brokerage revenue further. Additionally, diversifying its revenue streams, managing market risks effectively, and maintaining its robust liquidity and capitalization profile will be key to sustaining and potentially improving its credit ratings.