VIS Maintains Stable Broker Fiduciary Rating for Multiline Securities Limited

Karachi: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Multiline Securities Limited (MSL) at 'BFR3+', indicating a stable outlook. This announcement follows the previous rating action from May 2, 2023, underscoring consistent performance in governance and financial stability by the brokerage firm.

According to VIS Credit Rating Company Limited, the rating reflects Multiline Securities Limited's robust ownership, governance, and management capabilities. The company, established in 2001 and based in Karachi, offers equity brokerage, investment, and portfolio management services and is a member of the Pakistan Mercantile Exchange Limited (PMEX). It holds a Trading Rights Entitlement Certificate from the Pakistan Stock Exchange (PSX) and is registered with the Securities and Exchange Commission of Pakistan (SECP).

The rating assessment highlighted the sound governance of MSL, noting that the current board comprises four members. VIS suggested that increasing the board size and including independent and certified directors could further strengthen the governance framework. Management and client services were also rated favorably, with a recommendation for expanding internal policies and procedures to enhance the internal controls framework.

Financially, MSL showed an improvement in its earnings profile during the fiscal year 2023, driven by higher capital gains and increased brokerage revenue, which also led to better operational efficiency. The company's liquid assets provide adequate coverage against total liabilities, and its gearing and leverage indicators are considered sound. For future rating considerations, VIS emphasized the importance of continued improvement in earning profiles, cost-to-income ratios, diversification of business lines, and maintenance of liquidity and capitalization indicators.