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ICRA rates East India Securities' bank facilities at LBBB+/A2.

BANKING AND CREDIT NEWS-30 August 2010-ICRA rates East India Securities' bank facilities at LBBB+/A2(C)1994-2010 M2 COMMUNICATIONS

30 August 2010 - Indian credit rating agency ICRA rated Friday at LBBB+ with a "stable" outlook and at A2 various bank facilities of East India Securities Ltd.

The rating factors in the group's long experience in arbitrage trading business, adequacy of the risk management systems deployed, low operating cost structure, low gearing, comfortable capitalisation level and liquidity profile of the company.

The rating is constrained by its prime dependence on arbitrage trading business with low diversification of the business revenues, small presence in retail equity broking with declining market share, regional presence with the company mainly operating out of Kolkata. The rating at the current level reflects East India Securities' relative positioning with other ICRA rated brokerage houses.

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Publication:M2 Banking & Credit News (BCN)
Date:Aug 30, 2010
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