Karachi, June 22, 2022 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Intermarket Securities Limited (IMSL) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 7, 2021. The rating signifies adequate regulatory compliance and financial management, sound internal controls, compliance and risk management framework, HR, IT and client management while external control environment in considered strong.
Rating takes note of the Company’s adequate governance framework. Board is represented by four members along with independent representation. Increasing board size through addition of certified members may be considered for formation of independently represented board level committees. The Company’s internal control framework is sound, however, scope of internal policies may be enhanced in order to further strengthen the framework.
External controls remain strong. Client management is sound, however, enhancing grievance recording procedures and making research reports available on website may further strengthen client servicing. During the year, some observations of margin compliances in client accounts were observed by PSX. Monitoring and rectification of the same will remain important for the rating, going forward.
Assessment of financial profile indicates improvement in earning profile of the Company on account of increase in core brokerage income, however, brokerage volumes remained subdued on account of lower trading volumes which has impacted profitability in HFY22. Liquidity profile remained adequate while capitalization indicators are sound. The Company’s exposure to market risk remains manageable, however, operational efficiency maybe improved through curtailing administrative expenses. Going forward, increasing market share, while improving operational efficiencies along with maintenance of capitalization indicators will remain important for rating.
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/