Press Release

VIS Reaffirms Broker Management Rating of Next Capital Limited
 

Karachi, April 8, 2020: 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 26, 2019.

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

Reaffirmation of rating incorporates established market position of NCL in the business of brokerage and corporate advisory services. Rating also factors in NCL’s sound board level governance while improvement has been noted in performance benchmarks of client relationship and risk management as compared to prior year’s level.

Board size depicts strong corporate governance levels while formation of risk management committee during 2018 has been noted positively. On internal controls front, holding period needs to be extended in employee trading guidelines and blackout period may also be mentioned. Furthermore, CEO statement in annual accounts would add to external control environment. Frequency of reviewing internal IT manuals and policies may also be enhanced. Given limited proprietary investments, exposure to market risk is considered on lower side which is in line with best international practices.

Assessment of financial profile indicates improvement in bottom-line profitability during HFY20. Going forward, sustainability of the same will be observed overtime. Low leveraged capital structure of the company provides further support to financial profile.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 202) 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 2017
http://vis.com.pk/docs/BMR201701.pdf

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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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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