Press Release
JCR-VIS Reaffirms Broker Management Rating of BIPL Securities Limited
Karachi, December 28, 2018: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of BIPL Securities Limited (BIPLS) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 17, 2017.
The rating signifies strong external controls and regulatory compliance levels; sound HR & IT services, client relationship and risk management along with the adequate internal control framework and financial management.
The rating continues to factor in sound corporate governance and regulatory compliance supported by defined policy framework. Further improvement in board level governance was witnessed during the outgoing year with independent directors chairing the Board of Directors (BoD) and Board Audit committee (BAC).
In order to enhance internal controls, BIPLS carried out changes at functional level with the division of front and back office to improve reporting line clarity, strengthen transparency and reduce cost inefficiencies. Improvement in policy review intervals would enhance the control environment. Sizeable retail client base is a competitive advantage; however, weak market performance and lower trading volumes exerted pressure on earnings profile. Furthermore, diversification in revenue stream is considered important. Going forward, financial performance would remain sensitive to the volatility of local stock market and is subject to risks associated with it.
For further information on this rating announcement, please contact the undersigned (Ext: 207) at (021)35311861-71 or fax to (021)35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Broker Management Ratings 2017
http://jcrvis.com.pk/docs/BMR201701.pdf