Press Release

VIS Assigns Initial Broker Fiduciary Rating to Aba Ali Habib Securities (Private) Limited

Karachi, April 13, 2022: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3+’ to Aba Ali Habib Securities (Private) Limited (AAHSPL). The assigned rating denotes adequate fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating signifies sound internal controls and client services while ownership and governance & business and financial sustainability are considered adequate.

Assigned rating takes into account Company’s ownership and governance framework, represented by an adequate board size of six members along with independent representation and formation of board committees. The rating also takes note of the Company’s sound internal control framework which may be further strengthened through enhancing the scope of policies and procedures and exercising periodic review of the same. Furthermore, overall relationship with customers is considered sound with client facilitation tools and investor grievance procedures in place.

Assessment of financial profile indicates significant improvement in revenue and profitability in FY21, largely supported by re-measurement gains on securities and increase in brokerage income. As a result of increase in core income coupled with cost rationalization, cost to income ratio of the company improved. Market risk exposure stands reduced on account of low proprietary trading during FY21. In line, capitalization indicators depict improvement. Liquidity profile is considered sound providing ample coverage to liabilities. Going forward, diversity in revenue streams, operational efficiency together with managing market risk within acceptable levels and maintaining low gearing and leverage will remain important for rating.

AAHSPL is a private limited company offering brokerage of shares in ready and future market, stocks, securities research and other related services to both retail and foreign intuitional clients. The company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) at (021) 35311861-66 or email at info@vis.com.pk




Sara Ahmed
Director

Applicable Rating Criteria: Broker Fiduciary Ratings 2021
https://docs.vis.com.pk/docs/BrokerFiduciary012021.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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .