Press Release
VIS Reaffirms Entity Ratings of Foundation Securities (Pvt) Limited
Karachi, April 22, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed entity ratings of Foundation Securities (Pvt) Limited (‘FSL’ or ‘the Company’) at A/A2 (‘Single A/A Two’). Long-term rating of ‘A’ reflects good credit quality, with adequate protection factors. Risk might fluctuate depending on the state of the economy. Short-term rating of ‘A2’ signifies good likelihood of timely repayment of short-term obligations, with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on April 10, 2025.
FSL offers equity brokerage services with a limited presence in commodity segment and caters to domestic retail and institutions, high net worth individuals, and foreign broker dealers. Headquartered in Karachi, there are a total of 4 branches located in Lahore, Rawalpindi, and Islamabad. FSL is registered with Securities & Exchange Commission of Pakistan (‘SECP’) and holds a Trading and Self-Clearing (‘TSC’) license and Trading Rights Entitlement Certificate (‘TREC’) granted by Pakistan Stock Exchange Limited (‘PSX’) and license of Pakistan Commodity Exchange (‘PMEX’).
Assigned ratings of the Company take into account the strong sponsor profile, with majority shareholding held by Askari Bank Limited (AKBL), followed by the Fauji Foundation Group. AKBL is rated AA+/A1+, while Fauji Foundation is one of Pakistan’s largest conglomerates, with a diversified presence across multiple sectors and strong financial standing. Sponsor support encompasses financial backing to FSL.
Assigned ratings also incorporate the financial risk profile of the Company, with strong growth recorded in brokerage revenue, in line with overall positive industry trend, as well as improvement in profitability. Operational efficiency of the Company is considered at moderate levels. The liquidity profile remained adequate while market risk is considered low, given no proprietary investments held by the Company. Capitalization profile of the Company is considered adequate.
Assigned ratings further incorporate the business risk profile of the Company which remains high, given its presence in the brokerage industry, which is characterized by inherent volatility, intense competition, and strong regulatory oversight. With the escalation of the conflict in middle east and the economic aftermath of the same, the business risk has further elevated. Going forward, continued increase in the revenue and profitability profile along with maintaining market risk as well as improving liquidity and capitalization profile will remain important for the ratings.
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