JCR-VIS Reaffirms Broker Management Rating of Integrated Equities Limited

Karachi, December 07, 2018 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Integrated Equities Limited (IEL) at ‘BMR3++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 24, 2017.

The rating signifies sound continuity of internal control framework, client relationship management, risk management and HR and IT services along with adequate regulatory compliance levels and external controls. In line with lackluster stock market some weakening in financial management is observed.

The rating reaffirmation takes into account IEL’s adequate board level governance. However, increase in Board size along with appointment of an independent director would enhance corporate governance standards. Chairing of Board Audit Committee (BAC) by an independent director and the constitution of board level Risk Management Committee would further improve the same. Moreover, the company has sound customer relationship management system in place.

The internal control environment is adequately supported by defined internal policy framework. However, compliance and Risk management function may be segregated for clarity and control purposes. Consultancy function has been the profitability driver of the institution; weakening of the same adversely impacted the topline. Given the fixed nature of operating expenses, earning profile of the company has remained under pressure. However, support from one-off gain from sale of assets led to marginal profit for the year.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk