Press Release

VIS Assigns Positive Outlook to Entity Ratings of Intermarket Securities Limited

Karachi, November 17, 2021: VIS Credit Rating Company Ltd. (VIS) has maintained the entity ratings of Intermarket Securities (IMS) at ‘A-/A-2’ (A minus/A-Two). The long-term rating of ‘A-’ signifies good credit quality; protection factors are adequate meanwhile risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment with sound liquidity and company fundamentals. Access to capital markets is good along with low risk factors. Outlook on the assigned ratings has been revised from ‘Stable’ to ‘Positive’. Previous rating action was announced on December 04, 2020.

Revision in rating outlook is reflective of the turnaround in financial performance owing to uptick in industry trading volumes along with cost control measures. Moreover low leveraged capital structure and adequate liquidity buffers continue to provide support to overall financial risk profile. Ratings are constrained by the company’s significant dependence on equity brokerage operations and limited diversification of income streams. However, future sales strategy of further enhancing retail penetration along with materialization of available corporate advisory mandate would be important from rating perspective. The ratings would remain dependent upon maintenance of performance indicators at sound levels commensurate with the assigned ratings.

After two consecutive years of weak trading activity, volumes of PSX rebounded with a year-on-year growth of 24% in FY20 and a sizeable jump of 144% in FY21. This increase in economic activity locally and internationally post the initial shock of Covid -19 supported the rise in trading volumes in favourable interest rate regime. Benefitting the brokerage industry in their profits both in terms of trading volumes and one off capital gains. The ratings of the brokerage industry remain dependent on the continuity of economic gains and maintenance of sound financial profiles.

For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext. 306) at 021-35311861-70 or email at

Faryal Ahmad Faheem
Deputy CEO

VIS Entity Rating Criteria Methodology - Securities Firms Rating (July 2020)

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 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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