Karachi, September 17, 2020 (PPI-OT): VIS Credit Rating Company Ltd. (VIS) has upgraded entity ratings of Adam Securities Limited (ASL) to ‘A-/A-2’ (Single A Minus/A-Two) from ‘BBB+/A-2’ (Triple B Plus/A-Two). The long term rating of ‘A-’ signifies good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. The short term rating of ‘A-2’ signifies good certainty timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Previous rating action was announced on February 18, 2020.
Change in ratings assigned to ASL reflects low leveraged capital structure, improving trend in profitability and adequate liquidity indicators. Governance and internal control framework have room for further improvement. The assigned ratings also incorporate limited exposure to market risk through proprietary book. Diversification in revenue sources through growth in core brokerage business can be undertaken to lower risk of volatility in earnings.
The ratings are dependent on maintenance of rating benchmarks, low leverage indicators, retention of key personnel and sustainability of operating profitability. Meanwhile, growth in brokerage business, strengthening of internal controls and diligent monitoring of risks is also important from ratings perspective.
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/