RAM Ratings assigns BB+/NP to Bartleet Religare Securities

RAM Ratings Lanka has assigned the respective long- and short-term corporate credit ratings of BB+ and NP to Bartleet Religare Securities Private Limited (“BRS” or “the Group”) (formerly known as Bartleet Mallory Stockbrokers); the long-term rating has a positive outlook.

The ratings are upheld by the Group’s established franchise, strong financial profile and liquidity position. On the other hand, 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 (“Religare”) involvement, leading to better market share and profitability. Given its access to a vast Indian clientele through Religare, we expect BRS’s market share to increase, thereby improving its performance, and easing its customer-concentration risk.

BRS is involved in stockbroking and is a 50:50 joint venture (“JV”) between Bartleet Transcapital Limited (“BTCL”) and Religare Capital Markets Limited (“RCML”).