Press Release

VIS Reaffirms Broker Management Rating of AKD Securities Limited

Karachi, April 8, 2020: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of AKD Securities Limited (AKDSL) at ‘BMR2++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 4, 2019.

The rating signifies strong external control framework, client relationship management and HR & IT services while regulatory compliance levels, internal controls and risk & financial management are considered sound.

Reaffirmation of rating continues to factor in AKD’s sound board level governance while performance benchmark of HR & IT infrastructure services has improved during the period under review. Rating also take note of company’s long-standing experience in securities broking business, strong sponsor profile, sizeable retail client base and low-leveraged capital structure.

In terms of Board size, room for improvement still exists. Strengthening the same would enhance board oversight and avoid common members in board level committees. Formation of risk management committee may further enhance corporate level governance. On internal control front, a separate employee trading guidelines (ETP) may be added to the policy documents while holding period needs to be extended and blackout period may also be mentioned. Moreover, improvements have also been noted on regulatory and compliance front. Nonetheless, maintaining a propriety book is not considered with international best practices. Assessment of earning profile indicates considerable improvement in HFY20; however, there may be re-measurement losses on investments in view of substantial decline in equity market post COVID-19 outbreak. The same will be observed overtime.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 202) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk






Faryal Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2017
http://vis.com.pk/docs/BMR201701.pdf

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .