Press Release

VIS Upgrades Broker Fiduciary Rating of Foundation Securities (Private) Limited

Karachi, September 13, 2023: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Fiduciary Rating of Foundation Securities (Private) Limited (FSL) from ‘BFR3+’ to ‘BFR3++’. Outlook on the assigned rating is being revised from ‘Rating Watch-Developing’ to ‘Stable’. Previous rating action was announced on February 22, 2022.

The rating signifies strong management and client services as well as internal controls and regulatory compliance. Rating also denotes sound ownership & governance as well as adequate business & financial sustainability.

Assigned rating takes into account Company’s sound governance framework. Company derives strength from its strong sponsor, with Askari Bank Limited being the major shareholder following the merger with Askari Securities and Fauji Foundation as another shareholder. Rating also takes note of strong management and client services as well as internal control and regulatory compliance. FSL meets industry standards by offering mobile and web-based trading services, as well as online customer reports. To improve visibility on digital platforms FSL may consider utilizing advertisements and offering market research and equity reports. FSL has robust internal controls and adheres to regulatory compliance by implementing suitable policies and procedures that prevent conflicts of interest and maintain the confidentiality of sensitive information.

Assessment of financial profile indicates deterioration in earning profile on the back of subdued market conditions. Consequently, Company’s cost-to-income ratio has also worsened. However, liquidity profile is sound which covers more than 100% of FSL’s total liabilities. Moreover, Market risk of the Company is considered minimal given low proprietary book maintained by the Company. The Company has a sound gearing indicator while leverage witnessed a decline on timeline basis. Equity of the Company has witnessed a significant surge following the merger with Askari Securities Limited. Going forward, diversification in revenue streams, improvement in efficiency and capitalization indicators will remain important for rating.

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). External auditors of the company are Grant Thorton Anjum Rahman Chartered Accountants. External auditors belong to Category ‘A’ of State Bank of Pakistan’s approved list of auditors.

For further information on this rating announcement, please contact Ms. Batool Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-64 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

VIS Issue/Issuer Rating Scale:

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .