Press Release
PACRA assigns Initial Broker Fiduciary Rating to Cedar Capital (Pvt.) Limited
Date: 25-Jun-21
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (25-Jun-21 ) | ||
Action | Initial | ||
Rating | BFR 3 | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | CCPL is a family owned business and the stakes are being divided into two family members wherein the majority of shareholding lies with Mr. Umair Amanullah. | |
Governance | BoD comprises two professional members having experience in the financial services, however, room for improvement exists in board size. | |
Management and Client Services | CCPL's management team is well experienced. integration of technology into systems results in high efficiency and customer satisfaction. | |
Internal Controls and Regulatory Compilance | The Company has established adequate risk management framework and has in house internal audit department to look after the internal controls. | |
Business Sustainability | Ratings are constrained by the Company's significant dependence on equity brokerage operations, limited diversification of income streams. | |
Financial Sustainability | The Company has a reasonable capitalization level with regulatory Net Capital Balance (NCB) standing at PKR 146mln at end-Dec'20. CCPL may have asset under custody of up to 25x of net worth. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 07-Feb-08 |
Type of License | Trading and Self-clearing |
Majority Ownership | Mr. Umair Amanullah | ~74% |
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-21 |
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. |