Press Release
JCR-VIS Reaffirms Broker Management Rating of BMA Capital Management Limited
Karachi, January 24th, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of BMA Capital Management Limited (BMA) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 8, 2017.
The rating signifies strong internal controls, client relationship and HR & IT services; sound regulatory compliance levels, external control framework and risk management while financial management is adequate.
The rating continues to factor in BMA’s strong internal control environment substantiated by well-defined and prudent policy framework; however, an independent ‘conflict of interest policy’ may be developed and shared with staff for effective implementation of the same. Quality of external control framework is considered sound. Furthermore, increase in board size and formation of board level Risk Management and Human Resources committee would add to governance levels.
Profitability indictors remained under pressure due to reliance on retail brokerage function and depressed market volumes during FY18. Efficiency ratio has also weakened considerably. Going forward, financial performance would remain sensitive to volatilities of stock market and is subject to risks associated with it.
For further information on this rating announcement, please contact the undersigned (Ext: 207) at (021)35311861-71 or fax to (021)35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Broker Management Ratings 2017
http://jcrvis.com.pk/docs/BMR201701.pdf