Press Release

VIS Reaffirms Broker Management Rating of MRA Securities Limited

Karachi, August 3, 2022: VIS Credit Rating Company Ltd. VIS) has reaffirmed the Broker Management Rating of MRA Securities (MRA) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 12, 2021.

The rating signifies strong HR & IT infrastructure and sound Client relationship, external control and compliance and supervision framework. Regulatory framework, internal control environment and financial management are considered adequate.

Reaffirmation of rating takes note of strong HR and infrastructure and sound external control framework. The Company has recently changed auditors to an ‘A’ category, providing strength to the external control framework. Compliance and risk management framework is also sound; noting resolution of all AML related observation by SECP. Trade review procedures for non-compliant and suspicious trades have been strengthened. Client management is sound, however, the Company does not provide any research services to clients. Addition of the same may facilitate client acquisition and enhance customer experience in the long run. Governance framework is considered adequate. Increasing the board size and inclusion of certified directors may enhance the same.

Assessment of financial profile indicates improvement in earning profile of the Company in FY21 on account of increase in core brokerage income, however, brokerage volumes remained subdued in FY22 subsequently leading to negative bottom-line during 9MFY22. Higher cost to income ratio has impacted operational efficiency on a timeline basis, curtailment of administrative expenses may improve the same going forward. Liquidity profile and capitalization indicators remain adequate, however negative bottom-line may build pressure on gearing and leverage indicators. Going forward, increasing market share, improvement in profitability through augmentation and diversification of revenues, cost control and improvement of capitalization will remain important for ratings.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) at (021) 35311861-66 or email at info@vis.com.pk




Sara Ahmed
Director

Applicable Rating Criteria: Broker Management Ratings 2020
https://docs.vis.com.pk/docs/BMR202007.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright August 02, 2022 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.