Press Release
VIS Upgrades Entity Ratings of Adam Securities Limited
Karachi, March 4, 2026: VIS Credit Rating Company Ltd. (VIS) has upgraded entity ratings of Adam Securities Limited (‘ASL’ or ‘the Company’) to A/A1 (Single A/A One) from A-/A2 (Single A Minus/A Two). Long-term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A1’ depicts strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings has been changed to ‘Stable’ from ‘Positive’.
Previous rating action was announced on February 21, 2025.
Adam Securities Limited (ASL) is engaged in provision of equity brokerage services mainly to domestic retail and institutional clients. Shareholding of the Company is primarily vested within the family represented by one individual. The Company operates through its head office in Karachi and serves as the Authorized Participant and Market Maker for UBL, Meezan, Mahana Islamic Index and JS Momentum Factor Exchange Traded Funds (ETFs) and Cash Settled Future Contracts. ASL holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing Services issued by Pakistan Stock Exchange. The Company is also a Member of Pakistan Mercantile Exchange Limited (PMEX). External auditors are M/s Baker Tilly Mehmood Idrees Qamar Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
Ratings upgrade accounts for the Company’s improved capital structure, supported by a sizeable equity base coupled with a low leveraged balance sheet. The Company’s equity has strengthened on the back of higher profitability, primarily driven by revenue from ready future trading, followed by higher brokerage income in line with higher activity at the PSX. Ratings also incorporate the Company’s low market risk, as reflected by its sizeable exposures to ready future transactions and investments in fixed income funds. Additionally, the sound liquidity profile of the Company also supports the ratings.
Nevertheless, the business risk of the Company remains high, given its presence in the brokerage industry, which is characterized by inherent volatility, intense competition, amid strong regulatory oversight. Going forward, the Company’s ability to sustain profitability, management of market risk, liquidity and capitalization profile, will remain important rating considerations.
For further information on this ratings 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 Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf