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VIS Reaffirms Broker Management Rating of Pearl Securities Limited

Karachi, September 13, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Broker Management Rating of ‘BMR2’ assigned to Pearl Securities Limited (PSL). Outlook assigned on the rating is ‘Stable’. Previous rating action was announced on April 5, 2021. The rating signifies sound supervision framework, internal and external control environment, client relationship, compliance and risk management and HR and IT frameworks while regulatory requirement and financial management is considered adequate.

Assigned rating takes into account Company’s sound internal and external framework. Enhancing the scope of internal policies and disclosure in external statements may further strengthen the function. Client services are sound; however, investor grievance measures may be improved. HR infrastructure is also considered sound with full integration of ERP platforms. Compliance and risk management framework is also considered sound, although inclusion of a separate risk department may be considered. Rating takes into account adequate regulatory framework, which presents room for improvement in terms of board size and inclusion of certified and independent members.

Assessment of financial profile indicates significantly elevated market risk with short-term investments to equity at 2.38x end-HFY22. Liquidity profile remains adequate. Capitalization indicators also remain elevated. On account of slowdown in market activity during HFY22, pressure on profitability is expected to remain high, which may impact Company’s efficiency ratio. Going forward, improvement in earning profile, improvement in liquidity and 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/