Press Release
VIS Assigns Initial Broker Management Rating to Darson Securities Limited
Karachi, December 29, 2020: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Darson Securities Limited (DSL). Outlook on the assigned rating is ‘Stable’.
The rating signifies strong external control framework, sound risk management and compliance and sound HR and IT policies. Client relationship, supervision over regulatory requirements and financial management are considered adequate.
Assigned rating reflects DSL’s strong governance over external control environment along with sound HR and IT management policies. Formation of board level risk management committee and inclusion of independent director with relevant experience would enhance corporate governance. Rating takes note of sound risk management and compliance levels and good relationship with local and intuitional clients. Assessment of financial profile indicates increase in core brokerage income (owing to uptick in trading volumes) during FY20 however; higher administrative expenses (more than two-fold increase in salaries & commissions) led to loss at year-end. Going forward, diversity in income stream from other than brokerage would lower operational risk.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 205) or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk
Faryal Ahmad Faheem
Deputy CEO
Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf