PACRA Affirms Stable Rating for Spectrum Securities Limited

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the Broker Fiduciary Rating (BFR) of Spectrum Securities Limited at BFR 3+ with a stable outlook. The decision, disseminated on November 21, 2024, reflects the company’s continued growth and strong internal controls, as well as its ability to capitalize on market opportunities.

According to Pakistan Credit Rating Agency Limited, Spectrum Securities Limited has shown significant growth in its market share, rising from approximately 1.80% in the fiscal year 2023 to about 2.71% in fiscal year 2024, indicating a growth rate of over 50%. This growth is further supported by a 180% surge in brokerage revenue. The company’s financial sustainability is highlighted by an adequate capitalization level with a regulatory Liquid Capital Balance of approximately PKR 134 million, and its equity totaling around PKR 386 million as of June 2024.

The rating assessment takes into account the company’s ownership structure, with Mr. Muhammad Owais holding approximately 97% ownership and actively injecting capital to support operations. The governance framework benefits from a small but effective board comprising three directors, including an independent director, which enhances oversight. PACRA notes that further segregation of key management roles could strengthen the organizational structure, and the addition of an independent director on the board audit committee could improve internal control oversight.

Spectrum Securities Limited, established in 2014 as a public limited company, holds a trading and self-clearing license. As the company moves forward, maintaining topline growth, revenue diversification, and profitability remain key priorities. The retention of key management personnel and further separation of management roles are also deemed critical to sustaining and improving the company’s market position.

The post PACRA Affirms Stable Rating for Spectrum Securities Limited appeared first on Pakistan Business News.