Press Release

VIS Upgrades Broker Management Rating of Adam Securities Limited
 

Karachi, January 13, 2020: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Management Rating of Adam Securities Limited (ASL) to ‘BMR2’ from ‘BMR3++’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 9, 2019.

Rating signifies sound external control framework, client relationship and risk management along with adequate regulatory compliance levels, internal controls, client relationship, HR & IT services and financial management.

Assigned rating to ASL factors in the improvement in customer relationship management and internal controls. Complaint header on website’s homepage and addition of sms text complaint service has improved overall client relationship management while enhanced periodic review and sharing of policies with staff and customers adds to internal control environment. On regulatory front, addition of a director on board has positively impacted board level governance; nevertheless, further increase in board size would result in avoidance of common members in board level committees. Moreover, induction of independent director with relevant experience and qualification would strengthen overall board level governance.

Assessment of financial profile indicates weakening in core brokerage income given industry wide drop in trading volumes. Lately, ASL has initiated 2 new business lines i.e. corporate finance advisory and commodities. Significant contribution from these newly initiated lines of business will facilitate in revenue diversification, which is warranted.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 202) 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 2017
http://vis.com.pk/docs/BMR201701.pdf

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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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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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