Press Release

VIS Reaffirms Broker Management Rating of Next Capital Limited

Karachi, February 26, 2019: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Next Capital Limited (NCL) at ‘BMR2++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on February 23, 2018.

The rating signifies strong external controls; sound regulatory compliance levels, internal control framework, HR & IT services and risk management along with adequate client relationship and financial management.

Rating reaffirmation factors in NCL’s sound corporate and board level governance supported by requisite committees. However, inclusion of board members in existing Risk Committee would enhance the company’s risk governance framework. Internal control environment is considered effective with sufficient and well-defined policies. Conflict of interest policy may be shared with customers as well in order to strengthen controls. Minimum holding period, blackout period and the requisite of prior approval for trading from compliance may be specified in employee trading guidelines to enhance the control environment. Ratings take note of slowdown in stock market activity resulted in weakening of earning profile during FY18 while contribution from advisory services also remained on the lower side vis-à-vis preceding year. Cost-income ratio was thus reported higher.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at (021)35311861-71 or fax to (021)35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Broker Management Ratings 2017

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited