Press Release
VIS Reaffirms Entity Ratings of AKD Securities Limited
Karachi, Jul 29, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of AKD Securities Limited at ‘AA-/A1’ (Double A Minus/A One). Rating of ‘AA-’ reflects high credit quality, strong protection factors, and moderate risk but may vary slightly because of economic conditions. Short Term Rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations, with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on June 21, 2024.
AKD Securities Limited is a listed company principally engaged in the brokerage services of equity, commodities/Money Market/Forex trading, and Investment Banking. The Company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX). The Company serves a diverse clientele, including domestic and international retail investors, high net worth individuals, and domestic and international institutions.
Assigned ratings takes into account the Company’s standing as one of the market leaders in both brokerage and corporate advisory segments. Ratings also factor in the Company sponsor profile, with ~96% shareholding vested with AKD Group Holdings (Pvt.) (the Parent Company), which has a diversified strategic investment portfolio. Ratings also incorporate the Company’s financial profile. During FY24 and 9MFY25, the Company’s operating revenue posted strong growth, driven primarily by a sizeable growth in the Company’s brokerage revenue, in line with the positive industry trend. While income from other advisory and custody service exhibited robust growth, brokerage revenue continues to dominate the revenue mix. Consequently, the Company’s cost-to-income ratio depicted a notable improvement. Liquidity profile of the Company is considered adequate and market risk is considered on the lower side. Growth in the Company’s equity size along with low debt profile provides support to the Company’s capitalization profile. Going forward, maintenance of operational efficiency, liquidity, and capitalization profile will be important for the rating.
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