Press Release

VIS Revises Outlook on Entity Ratings of Foundation Securities (Private) Limited

Karachi, January 24, 2022: VIS Credit Rating Company Ltd. (VIS) has maintained the entity ratings of Foundation Securities (Private) Limited (FSL) at ‘A-/A-2’ (Single A Minus/A-Two). The outlook on the rating has been revised from ‘Stable’ to ‘Rating Watch - Developing’. The long term rating of ‘A-’ signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-2’ depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. The previous rating action was announced on May 25, 2021.

The revision in outlook takes into account the amalgamation of Askari Securities Limited (ASL) with and into FSL. ASL, a securities brokerage company, is a wholly owned subsidiary of Askari Bank Limited (AKBL). The amalgamation will entail transfer of complete undertaking of ASL with FSL, together with all properties, assets, liabilities and obligations of every description. The shares of ASL will be cancelled and for each share held in ASL by AKBL as a holder of 100% shares, twenty-seven million one hundred and forty thousand (27,140,000) shares of FSL will be issued to AKBL i.e. for every one (1) share of ASL of PKR 10 held by AKBL, one point one eight (1.18) ordinary shares of FSL of PKR 10 each will be allotted to AKBL. ASL will then dissolve without winding up.

The outlook on the rating has been revised in accordance with VIS’ ‘Securities Firm Rating’ Methodology and VIS’ ‘Criteria for Rating Watch’. Ratings will be reviewed once amalgamation is finalized and consolidated financial statements are made available.

For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) at 021-35311861-71 or email at info@vis.com.pk.



Faryal Ahmed Faheem
Deputy CEO

Applicable rating criteria: Methodology - Securities Firms Rating - July 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/SecuritiesFirm202007.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright January 24, 2022 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.