JCR-VIS Assigns Broker Management Rating to AKD Securities Limited

Karachi, December 20, 2017 (PPI-OT):JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Broker Management Rating of ‘BMR2++’ to AKD Securities Limited (AKDSL). Outlook on the assigned rating is ‘Stable’. The rating signifies regulatory compliance level and client relationship to be robust. HR, IT services, internal and external control environment are considered sound; internal compliance, risk management framework and financial management are adequate.

Assigned rating reflects compliance to regulations and board governance of the company to be sound; however, board composition has room for improvement in terms of size as well as presence of independent members in board committees. Although internal control environment is considered satisfactory, broadening the scope of documentation with more frequent policy reviews may enhance the same.

In addition to this, autonomous functioning of internal audit and compliance department may also strengthen the internal control environment. Although corporate advisory fees and underwriting income has declined, growth in brokerage commission and sizeable investment income has supported the bottom-line. Leverage indicators have trended upwards owing to re-measurement of available for sale portfolio in a declining stock market and reduction in advance against capital.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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