The Pakistan Credit Rating Agency Limited
31-Dec-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Places Entity Ratings of Alfalah Securities (Private) Limited on Rating Watch Developing
| Rating Type | Entity | |
|
Current (31-Dec-18 ) |
Previous (30-Jun-18 ) |
|
| Action | Maintain | Maintain |
| Long Term | A- | A- |
| Short Term | A1 | A1 |
| Outlook | Developing | Stable |
| Rating Watch | Yes | - |
Entity Ratings of Alfalah Securities (Private) limited apprehend its emerging position in the country's brokerage industry. During the year, Credit Lyonnais Securities Asia (CLSA) has acquired 24.9% stake in Alfalah Securities (Pvt.) Ltd. This is expected to bring changes on the board and strategy of the company and impact its overall standing in the industry. Moreover, there will be a change in entity's name to leverage CLSA's strong brand. Considering these developments, PACRA has placed the Entity Ratings of Alfalah Securities (Pvt.) Ltd on Rating Watch-Developing. The ratings will be reviewed after completion of this transition, regulatory approvals and all relevant activities.
About
the Entity
Alfalah Securities (Private) Limited is a financial services company, licensed as securities broker under Securities Brokers (Licensing and Operations) Regulations, 2016. The company is engaged in equity trading. The company also provides investment banking & advisory services. Alfalah Securities operates from Head office based in Karachi, Pakistan.
It is a subsidiary of Bank Alfalah Limited. The bank owns ~62% stake in Alfalah Securities. Credit Lyonnais Securities Asia (CLSA) now holds ~24.9% stake in the company. The remaining shareholding lies with the company's Chairman Mr. Aliuddin Ansari and the CEO Mr. Atif M. Khan.
CLSA is a Hong Kong based capital markets and investment group focused on alternative investment, asset management, corporate finance, securities and wealth management for corporate and institutional clients around the world.