Press Release

JCR-VIS Revises Entity Ratings of AKD Securities Limited

Karachi, August 2, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has revised entity ratings assigned to AKD Securities Limited (AKDSL) from ‘A+/A-2’ (Single A Plus/A-Two) to ‘ A/A-2’ (Single A / A-Two). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on January 6, 2016.

Legal proceedings by the FIA were initiated against the company including the arrests of some of its directors in January 2016, they have subsequently been released on bail in May 2016 by the Apex court and have returned to their positions. In the interim period, the business operations of the company experienced a downturn and human resource (HR) attrition was witnessed. A reduction in profitability was thus evidenced.

The sponsors and the management are making efforts to recoup the franchise and business position of the company. In this direction, recruitment of quality HR and attainment of earlier levels of corporate advisory and brokerage business are considered important. These along with the settlement of holding and associate companies’ liabilities and the conclusion of legal proceeding would be among the rating drivers, going forward.

For further information on this rating announcement, please contact the undersigned (Ext: 234) or Mr. Mohammed Khalid Ali (Ext: 241) at (021)35311861-70 or fax to (021)35311872-3.

Javed Callea

Applicable Rating Criteria: Methodology - Securities Firms Rating (May 2015)

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 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited