Press Release
VIS Reaffirms Broker Fiduciary Rating to Rafi Securities (Pvt) Limited
Karachi, September 03, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of Rafi Securities (Pvt) Limited (‘RSPL’ or ‘the Company’) at ‘BFR3’. Rating of ‘BFR3’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on June 02, 2025.
The rating signifies sound management & client services, while business & financial sustainability, ownership & governance, and internal controls & regulatory framework are considered adequate
RSPL is involved in investments, share and inter-bank brokerage, underwriting, advisory, and consultancy services. The majority shareholding (~97%) is held by the Chief Executive Officer (CEO), Mr. Naeem Rafi. The Company is registered with Securities & Exchange Commission of Pakistan and holds Trading Rights Entitlement Certificate (TREC) issued by Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. External auditors of the company are rated ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating takes note of room for improvement in the Company’s ownership and governance framework through expansion of the board size and inclusion of independent and certified directors, thereby ensuring a more diversified composition across board committees. Additionally, appointment of an ‘A’-rated auditor may further support the Company’s governance framework. The rating also takes into account the Company’s management and client services, which are assessed as sound. However, further improvement may be achieved through greater visibility of customer grievance procedures. Furthermore, the Company may consider expanding its geographical outreach to enhance its market presence. While contingency measures are in place, maintaining offsite backups at a third-party warehouse along with conducting frequent disaster recovery exercises may further strengthen their effectiveness. Internal controls are in place; however, broadening the scope and coverage of internal policies may further enhance the Company’s internal control framework. The rating also takes note of the non-compliances highlighted by PSX and the associated penalty imposed. Going forward, adherence to all applicable regulations will remain important for the ratings.
Assessment of the Company’s financial profile reflects strong growth in operating revenue, driven primarily by higher brokerage income in line with the overall positive industry trend. However, the Company’s cost-to-income ratio weakened despite revenue growth. The liquidity profile remains sound, while exposure to market risk remains high. Capitalization indicators are considered adequate. Going forward, enhancement and diversification of revenue streams, management of market risk, improvement in operational efficiency, and maintenance of capitalization indicators, and liquidity profile, will remain important for the rating.
For further information on this rating, please 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf