Press Release

VIS Reaffirms Broker Fiduciary Rating of Adam Securities Limited

Karachi, 7 November, 2022: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of ‘BFR3++’ assigned to Adam Securities Limited (ASL). Outlook on the assigned rating is ‘Stable’. Last rating action was announced on 12th October, 2021.

The rating signifies sound internal controls and management and client services while business and financial sustainability and ownership and governance is considered adequate.

Reaffirmation of ratings takes note of the Company’s governance framework where board comprises of five members with independent and female representation; however, room for improvement exists in the composition of Board committees whereby repetition of members has been observed. Moreover, rating also takes note of ASL’s sustained market share along with manageable financial risk profile. Internal controls framework, regulatory compliance and client management services continue to remain sound.

During FY21, the Company witnessed significant improvement in its earning profile, however, the same was adversely impacted in FY22 due to slowdown in market activity, however, contribution from advisory and underwriting services provided support to the bottom line. Cost to income ratio remains elevated. Improvement in the same will be key rating driver. Liquidity profile remains sound and market risk remains manageable, noting investments largely parked in fixed income securities. Capitalization indicators, however, depict an increase due to increase in short-term borrowings in support of investment portfolio. Going forward, enhancing diversity in revenues maintaining low market risk and improvement in cost to income ratio and capitalization indicators will remain important for rating.

ASL is a Trading Right Entitlement Certificate (TREC) holder of Pakistan Stock Exchange. The company is also a Member of Pakistan Mercantile Exchange Limited (PMEX). External auditors are M/s Baker Tilly Mehmood Idrees Qamar Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP). ASL operates through its head office based in Karachi.

For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 2021

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