Press Release

JCR-VIS Assigns Entity Ratings of ‘BBB+/A-2’ to Inter Market Securities Limited

Karachi, November 20, 2015: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial entity rating to Inter Market Securities Limited (IMSL) of ‘BBB+/A-2’ (Triple B Plus/A-Two). Outlook on the assigned ratings is ‘Stable’.

IMSL was incorporated in 2002 and since providing brokerage services to a limited group of clients. During 2015, the company was revitalized with the induction of quality resources in senior management positions to improve the performance of core operations and aid in positioning the company as a reputable brokerage and underwriting / placement services firm. The Chairman of the Board, Mr. Azneem Bilwani is also the main sponsor of the company holding majority shareholding.

The new senior management team put together includes a new CEO, Head of underwriting / placement services, Executive Director Research and Executive Director - Broking. These individuals with their relative experience in brokerage and underwriting / placement services are expected to prove valuable resources to the company for increasing market share and visibility, going forward. IMSL has also established an underwriting / placement services department during the year to focus on corporate relationships (advisory) and fund raising via equity subscription.

IMSL’s profitability has shown steady improvements to negate losses suffered during the 2008 market crash and provide the company with a sizeable net equity position. Brokerage services are primarily provided for ready markets with a small portion attributed to future trading and MTS (Margin Trading System). The company has a clean balance sheet structure with secured trade debts and no significant long term liability. The company maintains a sizable equity portfolio (FY15: 0.96x of total equity). While the portfolio has provided substantial un-realized capital gains, it nevertheless poses significant market risk. The company intends on reducing the size of the aforementioned portfolio in the near term.

The company plans to focus on growth in revenue from brokerage services via foreign and domestic institutional clients. The launch of IMSL’s online trading platform should support growth in this aspect. Augmentation of core operation revenue including that from advisory services is deemed vital to provide growth and stability, going forward.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Mohammed Khalid Ali (Ext: 508) 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, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2015 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited