OREANDA-NEWS. National Rating Agency has affirmed its national scale ‘A+’ and its global scale ‘iBB’ credit ratings on BrokerCreditService (Cyprus) Limited (BCS). The ratings, falling into the “Holding and Financial Companies” category of the NRA’s rating list, were assigned on Jan. 30, 2013 and withdrawn on Mar. 6, 2014 due to expiry of the rating contract. They were re-assigned on May 28, 2014. 

The rating is supported by the company’s lengthy experience in servicing Russian customers, advanced market position, well-organized risk management, high-quality business processes, sizable and adequate equity, strong profitability and consistently high solvency. NRA notes positive developments in BCS’s retail brokerage business line, namely the increasing customer base and growing asset turnover. The company leverages on its ties with and support from BCS FG. In our opinion, the parent group has a strong and stable financial standing, high-quality business and steady operating income.

The rating is constrained by the company’s exposure to macroeconomic and political risks that have recently risen considerably. These risks may destabilize BCS’s customer base and affect its revenue. From 2014, the Group transfers the greater part of its institutional business portfolio, previously handled byBrokerCreditService (Cyprus) Limited to BCS Prime Brokerage Limited. This renders brokerage customer accounts less diversified at a time when the retail clients’ behavior is less predictable due to macroeconomic volatility.

NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.

While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.