Press Release

VIS Upgrades Entity Ratings of Adam Securities Limited

Karachi, September 17, 2020: VIS Credit Rating Company Ltd. (VIS) has upgraded entity ratings of Adam Securities Limited (ASL) to ‘A-/A-2’ (Single A Minus/A-Two) from ‘BBB+/A-2’ (Triple B Plus/A-Two). The long term rating of ‘A-’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. The short term rating of ‘A-2’ signifies good certainty timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Previous rating action was announced on February 18, 2020.

Change in ratings assigned to ASL reflects low leveraged capital structure, improving trend in profitability and adequate liquidity indicators. Governance and internal control framework have room for further improvement. The assigned ratings also incorporate limited exposure to market risk through proprietary book. Diversification in revenue sources through growth in core brokerage business can be undertaken to lower risk of volatility in earnings.

The ratings are dependent on maintenance of rating benchmarks, low leverage indicators, retention of key personnel and sustainability of operating profitability. Meanwhile, growth in brokerage business, strengthening of internal controls and diligent monitoring of risks is also important from ratings perspective.

For further information on this rating announcement, please contact the undersigned (Ext: 306) or Mr. Muhammad Ibad Desmukh (Ext: 205) at 021-35311861-70 or fax to 021-35311873 or

Faryal Ahmad Faheem
Deputy CEO

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

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