Karachi, May 12, 2022 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has maintained the Broker Management Rating of BIPL Securities Limited (BIPLS) at ‘BMR2+’ with a revision in outlook from Stable to ‘Rating Watch Developing’. Previous rating action was announced on March 2, 2021. The rating signifies strong HR and infrastructure, sound regulatory framework and supervision, internal and external controls, client relationship management, and compliance levels whereas financial management is considered adequate.
Assigned rating takes note of sound regulatory requirement and supervision framework of the Company, being a listed company with majority ownership stake held by AKD Securities Limited (AKDSL). The Company’s board is represented by seven members along with independent representation. Change in outlook is on account of proposed merger of AKDSL into BIPLS. The rating will be reviewed once the proposed merger is finalized.
Rating also takes note of the Company’s sound internal and external control framework, client servicing measures are in place with availability of appropriate client management tools. HR and infrastructure of the Company is considered strong, disaster recovery exercises are practiced more than once a year. The Company’s risk and compliance framework is also considered sound. Independent functioning of company’s internal audit and compliance department have been noted, however settlement of ongoing KYC related issue will remain important for the rating.
Assessment of financial profile of the Company takes note of improvement in the company’s profitability and earning profile on account of increase in core brokerage income during CY21. Subsequently, still remaining on the higher side, the cost to income ratio also improved on a timeline basis. Market risk is low, liquidity profile is sound and capitalization indicators remain manageable however, leverage remains elevated for CY21. Augmented revenue streams, stable capitalization indicators and improvement in market share will remain important for the rating going forward.
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/