Press Release
PACRA Maintains Broker Fiduciary Rating of Abbasi and Company (Pvt.) Limited
Date: 23-Jun-23
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (23-Jun-23 ) | Previous (24-Jun-22) | |
Action | Maintain | Maintain | |
Rating | BFR 2 | BFR 2 | |
Outlook | Stable | Stable | |
Rating Watch | - | - |
Rating Rationale | Factor | Comment |
Ownership | Controlling stakes are owned by Mr. Syed Muhammad Ismail Abbasi who owns ~69.7% of the ownership. | |
Governance | ACPL has appointed three directors on the board consisting of family members. | |
Management and Client Services | The Company has a well-developed organizational structure and an experienced management team resulting in sound client services | |
Internal Controls and Regulatory Compliance | An outsourced internal audit and a dedicated risk and compliance department ensure adherence to regulatory compliance | |
Business Sustainability | A major part of revenue emanates from equity brokerage, however, engagements with PMEX have been revamped while also providing MTS services. | |
Financial Sustainability | The presence of prop-book results in market risk exposure. Leverage-free capital structure brings comfort to the rating. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 13-Feb-99 |
Type of License | Trading and Self-clearing |
Majority Ownership | Mr. Syed Muhammad Ismail Abbasi | ~69.7% |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Afnan Iqbal afnan.iqbal@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-23 |
Sector Study | Brokerage & Securities | Jan-23 |
Disclaimer | This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor. |