Press Release

VIS Upgrades Broker Management Rating of Topline Securities Limited
 

Karachi, May 14, 2020: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Management Rating of Topline Securities Limited (TSL) to ‘BMR2+’ from ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on February 6, 2019.

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

Assigned rating incorporates TSL’s established market position in the brokerage business while serving high net worth institutional clients (local and foreign) remains the forte of the company. Rating also factors in the improvement in regulatory and compliance framework while comfort is further drawn from low exposure to credit and market risk given high proportion of IDS in overall trading volumes and conservative proprietary book management strategy.

Board size depicts strong governance levels while formation of Risk Management committee has been noted and bodes well to international best practices. Quality of external auditors and focus on KYC is sound. Inclusion of CEO statement in annual accounts would add to external control environment. Frequency of reviewing internal IT manuals and policies may also be enhanced. Assessment of financial profile indicates improvement in profitability during HFY20; however, the same is expected to remain under pressure in view of macroeconomic challenges in the aftermath of coronavirus.

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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