Lahore, March 11, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short term entity ratings of JS Global Capital Limited (JSGCL) at ‘AA’ (Double A), and ‘A1+’ (A One Plus) respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings reflect JSGCL’s prominent position in the brokerage industry emanating from an established franchise, large market share, and sound operating platform. The ratings incorporate JSGCL’s robust financial profile characterized by its un-leveraged capital structure and strong risk absorption capacity owing to its healthy liquidity profile.
The company’s investment portfolio, in compliance with its Investment Policy Statement to invest in ‘A’ and above rated avenues, is dominated by bank placements (rated A+ and above) and spread transactions which provide a stable stream of income. The investment book also remains a source of comfort amidst inherently volatile brokerage volumes. Moreover, prohibition in proprietary trading in equities limits the company’s exposure to market risk. The ratings recognize JSGCL’s parentage – JS Bank. JS group carries extensive experience in capital markets.
The ratings are dependent on the company’s ability to effectively leverage extended outreach to enhance penetration in the retail market. Herein, augmenting its market share and effective marketing of its on-line platform would further enhance JSGCL’s business profile. Moreover, further strengthening of the strong internal control framework and retention and nurturing of key human resources remain imperative for JSGCL.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425