March 31, 2020 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of BIPL Securities Limited (BIPLS) at 'BMR2+'. Outlook on the assigned rating is 'Stable'. The previous rating action was announced on December 28, 2018. The rating signifies strong HR and IT services, sound regulatory framework, external controls, client relationship management, and compliance levels while internal control environment and financial management are considered adequate.

Reaffirmation of rating continues to factor in BIPL's sound board level governance while performance benchmarks of compliance and HR and IT infrastructure services have sustained to prior year levels. Downgrading of existing external auditor's category during 2018 has affected the overall external control environment. On internal controls front, holding period needs to be extended in employee trading guidelines while blackout periods for institutional and corporate trade are practiced. Control functions are autonomous and compliance of regulations is considered sound. The company does not maintain a propriety book which is aligned with best international practices.

Despite negative bottom-line, improvement has been observed in overall earning profile in 2019. Income generated from dividends and leverage financing has witnessed a decline on a timeline basis. Going forward, diversity in income stream from other than brokerage would lower operational risk.

For more information, contact:Director Compliance and Rating Analytics,VIS Credit Rating Company LimitedVIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,Phase VII, DHA, Karachi, PakistanTel: +92-21-35311861-72Fax: +92-21-35311873Email: bilal@jcrvis.com.pkWebsite: https://www.vis.com.pk/

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© Pakistan Press International, source Asianet-Pakistan