Karachi, September 30, 2021 (PPI-OT): VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to Fortune Securities Limited (FSL). Outlook on the assigned rating is ‘Stable’. The rating signifies sound ownership and governance, internal and regulatory compliance, management and client services and adequate business and financial sustainability.
Assigned rating reflects FSL’s sound ownership and governance levels with a board comprising of independent and certified members, however, governance framework may be reinforced by increasing the board size to assist in formation of board committees, in line with best practices. Management and client services are considered sound with client servicing procedures and tools available for customer facilitation, however increasing the frequency of reporting to customer may be considered for further enhancing client management services. Ratings also take into account the scope of internal policies and procedures including measures to protect client confidentiality that depict sound internal control and regulatory framework. Sharing of policies with all stakeholders and maintaining regular review of polices may be considered.
Assessment of financial profile of the company indicates improvement in profitability backed by increase in core income, in line with the market trend. Owing to consistent improvement in recurring revenues, company’s cost to income ratio declined on a timeline basis. Market risk remained minimal and liquidity profile remained adequate during FY21. Capitalization indictors increased slightly during FY21, but remained at manageable levels. The company’s overall business and financial sustainability remains adequate; however diversifying revenue streams, increasing market share and maintaining low leverage and higher operating efficiency will be important for rating, going forward.
Fortune Securities Limited has a TREC (Trading Right Entitlement Certificate) for Trading and Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are M/s Naveed Zafar Ashfaq Jaffery and Co. – Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
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/