JCR-VIS assigns entity ratings to R.F.J. Equity (Private) Limited

Karachi, December 01, 2015 (PPI-OT):JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial entity rating to R.F.J Equity (Private) Limited (REL) of ‘BB/A-3’ (Double B/A-Three). Outlook on the assigned ratings is ‘Stable’. Incorporated in 2006, REL has a mandate to conduct equity brokerage and underwriting services. Since inception, REL has maintained limited business activity and is principally engaged in provision of small-scale underwriting activities; no brokerage business is conducted by the company.

Resultantly, revenue of REL has largely emanated from underwriting during the year with further support provided by return on investments. Ratings are constrained by low revenue stream along with limited underwriting capacity on account of small capital base. Given capital injection and sizeable unrealized gain on investments, the company’s equity base amounted to Rs. 85.7m. Investment portfolio depicts significant concentration with exposure in limited number of scrips at year end.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk