Press Release
VIS Reaffirms Entity ratings of Arif Habib Limited
Karachi, May 22, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Arif Habib Limited at ‘AA-/A1’ (Double A Minus/A One). Long term rating of ‘AA-’ signifies high credit quality, and strong protection factors. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of A1 denotes strong likelihood of timely repayment of short-term obligations, with excellent liquidity factors. Outlook on the assigned ratings remain Stable. Previous rating action was announced on May 26, 2025.
Arif Habib Limited (‘AHL’ or ‘the Company’), established in 2004, is one of the leading brokerage and financial services company, engaged in provision of equity and money market brokerage, interbank foreign exchange, and corporate advisory services. The Company is registered with Securities & Exchange Commission of Pakistan (SECP) and holds Trading Rights Entitlement Certificate (TREC). External auditors of the Company are from Category ‘A’ of State Bank of Pakistan’s list of auditors. Earlier in July 2023, the Company had transferred its non-core assets and liabilities to Arif Habib Corporation Limited (AHCL).
Assigned ratings of the Company take into account its sponsor profile, with ~74% shareholding held by AHCL a publicly listed investment holding and management company with diversified interests in strategic sectors including fertilizers, securities brokerage, corporate advisory, asset management, cement, steel, wind power, and real estate development.
Ratings also reflect the Company’s established market position in both the brokerage and advisory business. The ratings also reflect the Company’s financial profile, with profitability supported by revenue growth—primarily driven by brokerage income, followed by advisory and consultancy operations. As a result, the Company’s capital structure strengthened further, evidenced by an expanded equity base and reduced short-term borrowings, although leverage indicators remain elevated. Operational efficiency, though improved, remains relatively high. The liquidity profile strengthened, while participation in ready–future transactions offers partial mitigation against market risk exposure.
While the diversified revenue base provides support, business risk remains elevated due to the significant reliance on the brokerage segment, which is inherently volatile, highly competitive, and subject to stringent regulatory oversight. Moreover, escalating external geopolitical risks and their potential economic repercussions have further heightened the overall business risk environment. Going forward, maintenance of revenue growth and profitability, prudent management of market risk, and improvement in operational efficiency, liquidity profile, and leverage indicators will remain important for the assigned ratings.
For further information on this rating announcement, please contact at (021) 35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Entity Rating
https://docs.vis.com.pk/Methodologies-2025/BrokerEntityRating.pdf
VIS Rating scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf