Press Release
VIS Assigns Initial Broker Management Rating to Multiline Securities Limited
Karachi, March 30, 2021: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR3+’ to Multiline Securities Limited (MSL). Outlook on the assigned rating is ‘Stable’.
The rating signifies adequate regulatory compliance levels and financial management, internal and external control environment is sufficient, compliance and risk management frameworks are satisfactory; HR, IT and customer service are adequately proactive.
Assigned rating reflects MSL’s improvement in profitability profile in the outgoing year FY20 while leverage indicators are sound. On governance front, increase in board size would avoid repetition of common members in board committees and facilitate the formation of risk management committee. CFO and CO positions should be segregated for clarity in reporting lines. The rating also takes note of adequate IT policies and infrastructure. Internal audit and compliance departments should be placed independently, as compliance and CFO positions being common the compliance function is compromised. Credit limits extended to retail customers may need to be tightened to enable better risk management.
Multiline Securities Limited (MSL) is a public unlisted company offering share brokerage, investment and portfolio management services to both retail and foreign intuitional clients. The company’s operations are run through its registered offices in Karachi.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 201) at (021) 35311861-66 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