Press Release

VIS Reaffirms Broker Fiduciary Rating of Multiline Securities Limited

Karachi, July 9, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of Multiline Securities Limited (MSL) at ‘BFR3+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on May 2, 2023.

Multiline Securities Limited is a public unlisted company incorporated in 2001, providing equity brokerage, investment and portfolio management services to both retail and foreign institutional clients. The company is also member of Pakistan Mercantile Exchange Limited (PMEX). The company operates through its registered offices in Karachi. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange (PSX) and is registered with SECP. External auditors of the Company are M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants, which belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

The rating signifies sound ownership and governance and management & client services, while business and financial sustainability, internal control framework & regulatory compliance are considered adequate.

Assigned rating takes into account Company’s sound ownership and governance levels. At present, the Company’s board comprises only of four members, therefore, increasing the board size through inclusion of independent and certified directors may strengthen overall governance framework. Disclosure levels are considered sound. Overall management and client services are also considered sound. Internal policies and procedures are present; however, enhancing the scope of the same may be considered to strengthen overall internal controls framework.

Assessment of the Company’s financial profile depicts improvement in earning profile during FY23 owing to higher capital gains and improved brokerage revenue. Resultantly, the efficiency of the Company witnessed improvement as well. Liquid assets of the Company provide adequate coverage against total liabilities while gearing and leverage indicators are considered sound. Going forward, improvement in the Company’s earning profile, cost to income ratio, diversity in business lines along with maintenance of liquidity and capitalization indicators will remain important for the rating.

For further information on this rating, please contact at 021-35311861-64 or email at info@vis.com.pk.



Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf

VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .