Press Release

VIS Assigns Initial Broker Fiduciary Rating to Adam Securities Limited

Karachi, 12 October, 2021: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3++’ to Adam Securities Limited (ASL). Outlook on the assigned rating is ‘Stable’.

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

Assigned rating reflects ASL’s established market position and sound financial sustainability along with established internal controls framework. However, ASL’s governance framework has room for improvement as limited board size is considered a constraint in formation of independently represented committees.

Financial profile of the company indicates improvement in FY21 on the back of one-off capital gains, however sustainability of profits from core operations will be important for ratings. Risk profile emanating from the investment portfolio has increased on account of higher quantum of short term investments vis-à vis equity base. The company’s underwriting quality remained sound and while leverage and gearing levels remain low. Liquidity profile of the company is strong with liquid assets providing comfortable coverage to liabilities. Going forward, maintaining expenses along with increasing core income in addition to diversity in revenue streams may provide comfort to the business risk profile of the company.

ASL is a Trading Right Entitlement Certificate (TREC) holder of Pakistan Stock Exchange. The company is also a Member of Pakistan Mercantile Exchange Limited (PMEX). External auditors are M/s Baker Tilly Mehmood Idrees Qamar Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP). ASL operates through its head office based in Karachi.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 201) at (021) 35311861-66 or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Broker Fiduciary Ratings 2021

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 .

VIS Credit Rating Company Limited