Press Release
VIS Maintains Entity Ratings of Growth Securities (Private) Limited
Karachi, October 7, 2024: VIS Credit Rating Company Ltd. has maintained the entity ratings of Growth Securities (Private) Limited (GSPL) at ‘A-/A-2’ (Single A minus/A-Two). Outlook on the assigned ratings has been revised to ‘Stable’ from ‘Negative’. The long-term rating of ‘A-’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of A-2 signifies good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Previous rating action was announced on June 13, 2023.
Growth Securities (Pvt.) Limited (‘GSPL’ or ‘the Company’) was incorporated in 2005, under the Companies Act 2017. The Company is engaged in ready-future arbitrage trading and provision of equity brokerage services to domestic clients. GSPL is registered with Securities & Exchange Commission of Pakistan and holds Trading Rights Entitlement Certificate (TREC) issued by Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. External auditors of the company are Baker Tilly Mehmood Idrees Qamar, Chartered Accountants, which belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
Revision in the rating outlook reflects improvement in the Company’s profitability, driven by growth in income from ready-future business and brokerage commission, supported by higher market activity amid favorable market conditions. Resultantly, operational efficiency has witnessed notable improvement, despite remaining higher. Market risk of the Company stands at a moderate level. Moreover, liquidity and capitalization profile of the Company is considered sound, supported by higher quantum of liquid assets and an unleveraged balance sheet. The Company also draws support from sponsor loan. Continued availability of the same will remain important from a ratings perspective. Additionally, enhancement of the client base to further boost its brokerage revenue, along with diversifying revenue stream, managing market risk, and maintaining the liquidity and capitalization profile of the Company will remain important for ratings.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Securities Firms:
https://docs.vis.com.pk/docs/SecuritiesFirm202007.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf