Press Release

VIS Reaffirms Entity Rating of CDC Share Registrar Services Limited

Karachi, December 12, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of CDC Share Registrar Services Limited (‘CDCSR’ or the ‘Company’) to 'A/A-1’ (Single A /A-One). Medium to long term rating of 'A' indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A-1' indicates High certainty of timely payment; Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings remains Stable. Previous Rating action was announced on October 24, 2022.

CDC Share Registrar Services Limited was originally formed as a department in Central Depository Company of Pakistan Limited (CDCPL) in 2008 and was later carved out as a wholly owned subsidiary of CDCPL in 2019. CDCSR is a Balloter/Share Registrar that offers a composite portfolio of handling IPOs, maintenance, registration, verification of shareholders data, handling of corporate actions, Intermediary Services, e-voting/e-meeting solutions and direct customer dealing & interaction with shareholders on behalf of client companies.

Ratings drive strength from the parent – CDCPL being the sole securities depository in the country with sizeable market presence and a diversified presence spanning over two decades. The rating also considers the seamless integration with the parent in terms of policies, procedures, IT infrastructure, and the effectiveness of internal audit and compliance functions. Furthermore, CDCPL provides a financial backdrop with sizeable liquid assets and conservative leverage supports the ratings of CDCSR. The continued implicit sponsor support from the parent company throughout the rating horizon is deemed essential for the assigned ratings.

In terms of business risk, CDCSR successfully expanded its client base in FY23 by signing 54 new clients, bringing the total to 290 and maintaining a 23% market share. Its competitive edge is derived from automated solutions such as e-Voting and e-Meeting and single window operations. The Company's revenue model is designed for stability, it includes periodic inflationary adjustments in the fee structure and benefits from low client switching risk due to its comprehensive service offerings.

CDCSR's financial performance showcases a strong profitability trajectory, with revenue growth on year-on-year basis, driven by new client acquisitions and inflation-adjusted fee renewals. Going forward, the Company expects revenue to increase further supported by its expansion into intermediary services. Operating margins improved, reflecting efficient fee structures and recurring revenue streams. The Company maintains a sound liquidity profile, with no interest-bearing long-term or short-term obligations recorded. Capitalization profile reflects a conservative approach with zero gearing and low leverage level. Maintenance of capitalization profile while augmenting the equity base will remain important for ratings.

For further information on this ratings announcement, please contact the undersigned at 021-35311861-64 (Ext. 201) or email at

Javed Callea

Applicable Rating Criteria: Corporates (May 2023)
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 .