Karachi, January 18, 2021 (PPI-OT): VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Adam Securities Limited (ASL) at ‘BMR2’.Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 13, 2020. Rating signifies sound external control framework, HR and IT services and risk management, while client relationship, regulatory compliance levels, internal controls and financial management are considered adequate.
Assigned rating to ASL factors in the segregation of internal audit and risk management department and improvement in the net capital balance during FY20. On the regulatory front, increase in board size would result in avoidance of common members in board level committees and would also facilitate the formation of risk committee. Moreover, addition of statement of compliance and CEO’s independent statement to the annual accounts may contribute towards efficiency in external control.
Assessment of financial profile indicates improvement in profitability by two-fold due to increase in capital gains caused by the uptick in the market valuations during FY20. The efficiency ratio has declined during the period under review and leverage indicators have been observed to be satisfactory.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/
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