VIS Reaffirms Broker Management Rating of FDM Capital Securities

Karachi: VIS Credit Rating Company Ltd. has reaffirmed the Broker Management Rating of FDM Capital Securities (Private) Limited at ‘BMR3++’ with a ‘Stable’ outlook. This decision reflects the company’s robust external control framework, compliance practices, and satisfactory client relations.

The rating underscores FDM Capital Securities’ strong governance, although opportunities exist to enhance its board’s size and diversity. The company, established in 2001, focuses on brokerage services and operates from its office in the Pakistan Stock Exchange Building. Its compliance with regulatory standards and internal control frameworks is deemed adequate.

The company’s financial profile shows a rebound in profitability in FY24, driven by increased brokerage revenues and capital gains. This has led to improved operational efficiency. FDM Capital Securities maintains a debt-free balance sheet, contributing to a sound capitalization profile.

Challenges remain, including enhancing board diversity, strengthening contingency measures, and expanding marketing efforts. Addressing these areas could further solidify the company’s operational and financial standing.

VIS emphasizes the importance of revenue base diversification, market risk improvement, and maintaining operational efficiency for FDM Capital Securities to sustain its current rating.