The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (01-July-2005)
   

PACRA Assigns Ratings to Jahangir Siddiqui Capital Markets Limited (JSCM)
 

 
Analyst
Maimoon Rasheed
(+92-42-586 9504)
maimoon@pacra.com

 

 

 









 

 

 



 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned a long-term rating of “AA-” (Double A minus) and a short-term rating of “A1+” (A One plus) to Jahangir Siddiqui Capital Markets Limited. These ratings, applicable to senior unsecured creditors of the company, denote a very low expectation of credit risk emanating from very strong capacity for timely payment of financial commitments.

The ratings reflect JSCM's inherently low risk business profile primarily emanating from pure brokerage operations. The ratings also take into account the company's strong financial position stemming from its robust performance and expanding equity base. The nature of its operations and structure of its client base mitigate the risk of adverse impact on the company's core profitability in the event of any sharp decline in the stock market and the trading volumes. Although comprehensive risk management policies were inherited from the parent company, the company is in the process of implementing new systems in line with the challenges emanating from an increasingly competitive operating environment. Meanwhile, the company's strong franchise value through its association with the JS group is also a key-rating factor.

About the Company: The company, sponsored by Jahangir Siddiqui & Company Limited (JSCL), was incorporated in June 2000. The commercial operations were started in May 2003, when JSCL transferred its agency business – equity, fixed income and currency brokerage, research and corporate finance – to JSCM (Pvt.) Limited, a wholly owned subsidiary at that time. Subsequently, on December 31, 2004, JSCL divested its 25% stake through an offer for sale and JSCM was listed on Karachi and Islamabad Stock Exchanges. According to the group's conscious strategy, JSCM's operations are to be confined predominantly to the brokerage operations with zero exposure in proprietary trading.

JSCL, one of the pioneers of introducing economic and equity research, set up a full-fledged Research Department in 1993. The department, under the management of JSCM, consists of a team of distinguished professionals in the field of research. Currently, two sets of bulletins – a Daily and a fortnightly – are generated primarily for clients.
 
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