December 30, 2019 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The ratings reflect the Company's association with an international financial services group, EFG Hermes, and its emerging position in Pakistan's brokerage industry. The ratings incorporate strong sponsor support, robust governance framework and internal control environment. Direct reporting to respective group heads and centralized research function augurs well for organizational structure. Due to lackluster market performance the profitability of the Company remains depressed. The Company has a modest equity base and leveraged capital structure. Sizable liquid assets and support from parent in the form of guarantees provide comfort to the ratings.

The ratings are dependent on the management's ability to retain its market share and enhance the volumes and diversity of revenue to improve its competitive position in the brokerage industry. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls will remain critical.

For more information, contact:Analyst,The Pakistan Credit Rating Agency Limited (PACRA)Awami Complex, FB1, Usman Block New Garden Town,Lahore, PakistanTel: +92-42-5869504-6Fax: +92-42-5830425Email: hammad.rashid@pacra.comWebsite: www.pacra.com

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© Pakistan Press International, source Asianet-Pakistan