RAM Ratings assign BB+/NP to Bartleet Religare Securities

RAM Ratings has assigned the long and short-term corporate credit ratings of BB+ and NP to Bartleet Religare Securities (Pvt) Ltd. (BRS). The long-term rating has a positive outlook.

The ratings are upheld by the Group's established franchise, strong financial profile and liquidity position. The ratings are tempered by the Group's vulnerability to stock market volatility, keen competition in the industry as well as its high reliance on key personnel in generating brokerage income.

The outlook of the long-term rating is based on our view that BRS's competitive position would strengthen over the medium term on the back of Religare Enterprise Limited's involvement, leading to better market share and profitability. Given its access to a vast Indian clientèle through Religare we expect the BRS's market share to increase, there by improving its performance and easing its customer orientation risk. The ratings are supported by BRS's good franchise.

This is reflected in the relatively good market share underscored by its established reputation derived from the century-old Bartleet Group as will as its strong retail clientele.

The Group's franchise is expected to be strengthened by the rebranding strategy of incorporating its new JV partner's brand Religare which would help attract foreign clients.

The ratings are further supported by the Group's financial profile which has been strengthened following a capital infusion by RCML in November 2010.

The strong capital buffer is expected to support the Group's branch expansion information system upgrade and expanding business.

BRS's liquidity position is deemed strong.