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Press Release
PACRA Upgrades Broker Fiduciary Rating of KTrade Securities Limited
Date: 12-May-22
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (12-May-22 ) | Previous (26-May-21) | |
Action | Upgrade | Initial | |
Rating | BFR 3++ | BFR 3+ | |
Outlook | Stable | Stable | |
Rating Watch | - | - |
Rating Rationale | Factor | Comment |
Ownership | Major Shareholding of the Company is vested with Oxford Frontier Capital Limited. | |
Governance | The Board is comprised of three members all of whom are family members. The Company is in the process to further enhance the governance framework. | |
Management and Client Services | Management team is well experienced while integration of technology into the systems results in efficient reporting mechanism and customer satisfaction. | |
Internal Controls and Regulatory Compliance | Outsourcing of internal audit and separation of compliance and risk department is considered positive. | |
Business Sustainability | The Company registered a considerable growth amidst augmentation in client base; however, significant dependence on equity brokerage income is a constraint. | |
Financial Sustainability | The Company is not engaged in proprietary trading which limits the market risk. Leverage free capital structure provides support to the rating. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Public Limited |
Year of Establishment | 25-Apr-13 |
Type of License | Trading and Self-clearing |
Majority Ownership | Oxford Frontier Capital Limited - 58% |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Afnan Iqbal afnan.iqbal@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-21 |
Sector Study | Brokerage & Securities | Jan-22 |
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. |