KARACHI:VIS Credit Rating Company Limited has assigned Initial Broker Fiduciary Rating of to Foundation Securities (Private) Limited. The assigned rating denotes good fiduciary standards. In line with VIS methodology, the outlook on the rating has been assigned as ‘Rating Watch – Developing’ on account of amalgamation of Askari Securities Limited (ASL) with and into FSL. Rating will be reviewed once amalgamation is finalized, said release on Tuesday.
The rating signifies strong management and client services as well as internal controls and regulatory compliance. Ownership and governance, and business and financial stability is adequate.
Assigned rating takes into account FSL’s strong internal control and regulatory compliance and management and client services. Appropriate policies, procedures, and infrastructure are in place along with enhanced client facilitation resource including research analysis. Geographical presence of the company in multiple cities is noted. Rating also takes into account adequate governance framework of FSL. Limited board size and lack of independent representation limits formation of additional independently represented board committees. Addition of certified directors on the board is also considered important.