Press Release
VIS Revises Outlook on Broker Fiduciary Rating of AKD Securities Limited
Karachi, May 27, 2022: VIS Credit Rating Company Ltd. (VIS) has maintained the Broker Fiduciary Rating of AKD Securities Limited (AKDSL) at ‘BFR2++’. The outlook on the rating has been revised from ‘Stable’ to ‘Rating Watch - Positive’ on account of proposed merger of AKDSL with BIPL Securities Limited (BIPLS). The ‘BFR2++’ rating signifies strong client ownership and governance, management and client services and business and financial sustainability while internal controls and regulatory compliance are sound. The previous rating action was announced on December 27, 2021.
BIPLS is currently a subsidiary of AKDSL. According to the planned merger, AKDSL, with all of its assets and liabilities, will be merged with BIPLS in exchange for issuance of ordinary shares of BIPLS to the shareholders of AKDSL on the basis of swap ratio of 2.59. Respective boards of BIPLS and AKD have approved this scheme of arrangement, while regulatory approvals are still under progress. The surviving entity will be named as “AKD Securities Ltd.” upon sanctioning of this scheme. Till the time merger is completed, SECP has granted relaxation against holding two TRE Certificates and licenses by an entity or sponsor under the regulatory framework. The rating will be reviewed once the proposed merger is finalized.
For further information on this rating announcement, please contact Ms. Sara Ahmed, (Ext: 207) or the undersigned (Ext: 306) at 021-35311861-71 or email at info@vis.com.pk.
Faryal Ahmed Faheem
Deputy CEO
Applicable Rating Criteria: Broker Fiduciary Ratings 2021:
https://docs.vis.com.pk/docs/BrokerFiduciary012021.pdf