Press Release

VIS Assigns Initial Broker Management Rating to Fortune Securities Limited

Karachi, October 12, 2021: VIS Credit Rating Company Ltd. VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Fortune Securities Limited. Outlook on the assigned rating is ‘Stable’.

The rating signifies strong external control framework, sound client relationship and HR and infrastructure, internal control framework and risk management while regulatory requirement and supervision and financial management are considered adequate.
The assigned ratings take into account adequate regulatory requirement and supervisory framework where the Board comprises of three certified members with recent independent representation. Inclusion of more certified members to the strengthen overall governance framework additionally, acquisition of related licenses would also support trading activity.

Ratings also take into account sound internal control framework and client relationships, client servicing tools are available to assist customers. HR infrastructure, compliance and risk management are also considered sound. The company has recently established a separate risk management department for customer evaluation procedures. Overall organizational infrastructure of the company is sound with the size of the operations.

Assessment of financial profile indicates improvement in profitability the back of increase in core income supported by revenues arising from margin finance business. The company’s cost to income ratio improved during FY21 on account of increase in recurring income. Liquidity profile remained adequate while market risk remained minimal during FY21. Capitalization indicators slightly increase however remained manageable during the period under review. Going forward, diversifying and increasing revenue streams, maintaining acceptable capitalization levels and improvement in market share will remain important for the rating.

Fortune Securities Limited has a TREC (Trading Right Entitlement Certificate) for Trading and Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are M/s Naveed Zafar Ashfaq Jaffery & Co. - Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .