Press Release

VIS Reaffirms Broker Management Rating of Pearl Securities Limited

Karachi, April 5, 2021: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Pearl Securities Limited (PSL) at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 2, 2020.

The rating signifies sound internal and external control framework, risk management, client relationship and HR & IT services while regulatory compliance levels and financial management are adequate.

Reaffirmation of rating takes note of PSL’s sound board governance levels, although room for improvement exists in board size to avoid repetition of common committee members. Internal and external control framework is considered sound, adding directors’ report, CEO statement and Statement of Compliance with Code would enhance disclosure level. Customer grievance procedures may be improved by availability of sending complaints acknowledged with number through sms. Overall organizational structure is well defined and adequacy of internal control environment is sound.

Assessment of financial profile indicates improvement in profitability on account of increase in core brokerage income. Discontinuation of underwriting and advisory license has increased dependence of revenues emanating from broking services. On the other hand, increase in equity base has positively impacted gearing and leverage indicators, as of HFY21 gearing stood at 4.2x (FY20 14.6) while leverage stood at 2.9x (FY20 11.1) though still remaining on the higher side. Going forward, sustainability of the same shall be observed over time.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk






Faryal Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .