Press Release
VIS Reaffirms Entity Ratings of Insight Securities (Private) Limited
Karachi, September 20, 2024 VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Insight Securities (Private) Limited at ‘BBB+/A-2 (Triple B Plus/A-Two). The long-term rating of ‘BBB+’ signifies adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur 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. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on May 26, 2023.
Insight Securities (Private) Limited was incorporated in 2006. Insight Securities provides equity brokerage services in ready and future market to local retail clients and institutional clients. The Company holds Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are M/s Grant Thornton Anjum Rehman Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP). The Company operates from Karachi and provides both online and assisted trading services to its clients.
Assigned ratings take into account the business and financial profile of the Company. During 9MFY24, the Company’s brokerage revenue experienced an uptick on account of increased market activity in addition to notable contribution from dividend income. Revenue mix, nevertheless, remained concentrated in brokerage income. The profitability increase in FY24 was also supported by one off capital gains. The operational efficiency witnessed an improvement, reaching a moderate level. The liquidity profile of the Company remained sound, with liquid assets providing a sizeable coverage against its total liabilities. Market risk remains on the higher side with exposure in equity securities. Capitalization profile of the Company draws support from no debt on its books. However, liquid capital remains constrained relative to peers. Going forward, maintenance of capitalization and liquidity indicators together with increase in market share and further improvement in operational efficiency 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