Press Release
VIS Reaffirms Broker Management Rating of Adam Securities Limited
Karachi, January 18, 2021: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Adam Securities Limited (ASL) at ‘BMR2’.Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 13, 2020.
Rating signifies sound external control framework, HR & IT services and risk management, while client relationship, regulatory compliance levels, internal controls and financial management are considered adequate.
Assigned rating to ASL factors in the segregation of internal audit and risk management department and improvement in the net capital balance during FY20. On the regulatory front, increase in board size would result in avoidance of common members in board level committees and would also facilitate the formation of risk committee. Moreover, addition of statement of compliance and CEO’s independent statement to the annual accounts may contribute towards efficiency in external control.
Assessment of financial profile indicates improvement in profitability by two-fold due to increase in capital gains caused by the uptick in the market valuations during FY20. The efficiency ratio has declined during the period under review and leverage indicators have been observed to be satisfactory.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk
Faryal Ahmad Faheem,
Deputy CEO
Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf