Press Release

VIS Upgrades Broker Management Rating of AKD Securities Limited

Karachi, June 2, 2021: VIS Credit Rating Company Ltd. (VIS) has upgraded the Broker Management Rating of AKD Securities Limited (AKDSL) to ‘BMR1’ from ‘BMR2++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on April 8, 2020.

The rating signifies strong regulatory compliance levels, financial management and control environment; compliance and risk management frameworks are effective; HR, IT and customer service are highly proactive.

Upgrade in rating takes note of company’s long-standing experience in securities broking business, strong sponsor profile, sustained control environment and improved overall business performance. Strategic investment policy against the backdrop of surge in industry trading volumes led to an improvement in profitability in the ongoing year. Further improvement in profitability is projected post completion of planned acquisition of a local brokerage house. Moreover, provision of expected credit losses in FY20 augers well for the risk profile of the company.

In line with best international practices, room for improvement exists in terms of increasing board size through inclusion of more than one independent director with relevant experience and increasing the frequency of reviewing and documenting internal control policies.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk





Javed Callea
Advisor

Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf

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