The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and the short-term ratings of Jahangir Siddiqui Capital Markets Limited (JSCM) at "AA-" (Double A minus) and "A1+" (A One plus), respectively.
The ratings denote a very low expectation of credit risk, emanating from very strong capacity for timely payment of financial commitments. The ratings reflect the company's low risk profile, emanating from brokerage business as the primary function.
Meanwhile, the company's strong franchise value through its association with the JS group is also a key-rating factor. The ratings are placed on the Rating Watch with Positive implications, pending the finalisation of the proposed equity injection of Rs 2.25 billion from Global Investment House KSC (GIH) - a Kuwait-based company. This would make GIH and JSCL two major stakeholders in the company with equal shareholding. The huge additional equity would transform the financial profile of the company with considerable improvement in business prospects.-PR