December 31, 2018 (MLN): CR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of BIPL Securities Limited (BIPLS) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 17, 2017.
The rating signifies strong external controls and regulatory compliance levels; sound HR & IT services, client relationship and risk management along with the adequate internal control framework and financial management.
The rating continues to factor in sound corporate governance and regulatory compliance supported by defined policy framework.
Sizeable retail client base for the company is a competitive advantage; however, weak market performance and lower trading volumes exerted pressure on earnings profile.
Furthermore, diversification in revenue stream is considered important. Going forward, financial performance would remain sensitive to the volatility of local stock market and is subject to risks associated with it.
