Press Release
JCR-VIS Assigns Broker Management Rating to AKD Securities Limited
Karachi, December 20, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Broker Management Rating of ‘BMR2++’ to AKD Securities Limited (AKDSL). Outlook on the assigned rating is ‘Stable’.
The rating signifies strong regulatory compliance levels and client relationship management; sound internal and external control framework and HR & IT services along with adequate risk and financial management.
Assigned rating reflects compliance to regulations and board governance of the company to be sound; however, board composition has room for improvement in terms of size as well as presence of independent members in board committees. Although internal control environment is considered satisfactory, broadening the scope of documentation with more frequent policy reviews may enhance the same. In addition to this, autonomous functioning of internal audit and compliance department may also strengthen the internal control environment. Although corporate advisory fees and underwriting income has declined, growth in brokerage commission and sizeable investment income has supported the bottom-line. Leverage indicators have trended upwards owing to re-measurement of available for sale portfolio in a declining stock market and reduction in advance against capital.
For further information on this rating announcement, please contact the undersigned (Ext: 201) at (021)35311861-71 or fax to (021)35311872-3.
Javed Callea
Advisor
Applicable Rating Criteria: Broker Management Ratings 2017
http://jcrvis.com.pk/docs/BMR201701.pdf