Press Release

VIS Upgrades Rating of AKD Securities Limited (formerly BIPL Securities Limited)

Karachi, December 07, 2022: VIS Credit Rating Company Ltd. (VIS) has upgraded the entity ratings of AKD Securities Limited (AKDSL) (formerly BIPL Securities Limited) to AA-/A-1 (Double A Minus/A-1) from ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned ratings has been changed to ‘Stable’. 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 ‘A-1’ indicates high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors and minor risk factors. Previous rating action was announced on July 4th, 2022.

Under a Scheme of Arrangement approved by the High Court of Sindh, effective July 1, 2022, the entire undertaking of AKD Securities Limited (AKDSL), a public unlisted company in Pakistan, including its properties, assets, liabilities and rights and obligations was merged with and into the BIPL Securities Limited, a listed brokerage Company. Subsequently, the name of the Company has been changed to AKD Securities Limited on 22 July 2022.

Assigned rating takes into account improvement in market position of the Company, post-merger. With a wider branch network and a larger client base, Company’s competitive position is expected to strengthen. The assigned ratings factor in AKDSL’s long-standing experience in equity brokerage business, strong sponsor profile, sizeable retail clientele and adequate liquidity indicators. The ratings also take into account the high business risk profile of the brokerage industry, given the volatility in trading volumes. Historically, owing to this volatility in volumes, brokerage industry players, including AKDSL, have experienced swings in profitability.

Ratings factor in opportunities for the Company, post-merger, in term of product development and scalability. The Company has acquired a money market license as a result of this merger, which should bode well for revenue generation in a high interest rate environment. However, as a result of new product development, maintaining operational efficiencies will remain a key rating driver. In FY22, amidst notably low market volumes, the Company recorded lower brokerage revenues as well as booked realized and unrealized capital losses on their propriety book. While capitalization remains strong among peers, given sizable investment book and active proprietary trading, market risk remains elevated and continues to be a rating constraint.

Going forward, as part of its core strategy, management will continue to focus on growing its retail clientele, supported by product innovation and technology improvements. Achievement of projected plans along with improvement in profitability and liquidity indicators will remain important for ratings, going forward. Ratings factor in improvement in Corporate Governance and disclosure levels, being a public listed entity.

For further information on this rating announcement, please contact Mr. Amin Hamdani (Ext: 217) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable rating criteria: Methodology – Securities Firms Rating (July 2020)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .