Press Release

VIS Upgrades Broker Management Rating of Intermarket Securities Limited

Karachi, April 7, 2021: VIS Credit Rating Company Ltd. (VIS) has upgraded the Broker Management Rating of Intermarket Securities Limited (IMSL) at ‘BMR2+’ from ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on March 5, 2020.

The rating signifies sound regulatory compliance levels and financial management, internal and external control environment is robust, compliance and risk management frameworks are effective; HR, IT and customer service are sufficiently proactive.

Rating upgrade takes into account improvement in net capital balances owing to the general recovery in trading volumes during the year. Rating also factors in the company’s sound board governance levels, however the formation of a risk management committee would bode well with best international practices. The company’s control framework is sound; however, internal control framework can be strengthened by including guidelines in the Employee Trading Policy (ETP) for timely reporting to compliance officer. Additionally, statement of compliance with code and CEO’s separate statement may also be added to the annual financial statements to enhance disclosure level. Trade review procedures are in place though frequently practicing disaster recovery exercises and maintaining data back-ups with third party would enhance business continuity framework.

Assessment of financial profile indicates improvement in profitability owing to uptick in industry trading volumes. During 1QFY21, the company posted a PAT of Rs. 63.7m (FY20: Rs. 19.8m). Efficiency ratio has also improved on timeline basis; the company’s overall capital structure is supported by low levels of leverage and gearing.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2020

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