Press Release

VIS Upgrades Entity Ratings of Intermarket Securities

Karachi, September 05, 2019: VIS Credit Rating Company Ltd. (VIS) has upgraded the entity ratings of Intermarket Securities (IMSL) to ‘A-/A-2’ (A minus/A-Two). Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on April 25, 2018.

The rating revision takes into account IMSL’s planned improvement in capitalization, through conversion of director’s loan into equity. Post transfer, the company’s net equity will rise above Rs. 800mn, which is further committed to be enhanced to Rs. 1bn, over the medium term.

Given lackluster stock market dynamics, the company remained in operating losses, however, continued with its efforts to control and reduce them. Going forward, a turnaround in profitability remains linked with a turnaround in trading volumes in the domestic market.

Liquidity profile is considered adequate on the back of sufficient coverage of current liabilities by liquid assets. Minimal underwriting mandates were taken up during FY18 whereby IMSL remained compliant with its overall and per party underwriting limits. Gearing and leverage are adequate for the assigned rating.

The assigned rating is dependent on materialization of medium term equity reinforcement plans and compliance with underwriting restrictions committed to VIS.

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

Javed Callea

Applicable rating criteria: Methodology - Securities Firms Rating (May 2015)

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 .

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