Press Release
VIS Maintains Broker Fiduciary Rating of MRA Securities Limited
Karachi, July 23, 2025: VIS Credit Rating Company Ltd. (VIS) has maintained the Broker Fiduciary Rating of MRA Securities Limited at ‘BFR3++’. Outlook on the assigned rating has been changed to ‘Negative’ from Stable. Last rating action was announced on May 13, 2024.
The rating signifies sound governance, financial sustainability, and management & client services, while internal controls & regulatory compliance are considered adequate.
MRA Securities Limited is principally engaged in provision of equity brokerage services to domestic clients. Majority shareholding of MRA is vested with the Rafiq family. Currently, the brokerage operates through its head office based in Karachi and 10 branches in the same city. Operations at branch level are limited to brokerage services only. The Company holds a Trading and Self Clearing (TSC) entitlement certificate issued by the Pakistan Stock Exchange Limited. External auditors of the Company are Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants, who belong to category ‘A’ on State Bank of Pakistan’s (SBP) approved list.
The assigned rating takes note of the Company’s governance structure, supported by the presence of two independent directors on the board. However, the overall board size remains limited to three members. Increasing the board size may enhance the governance framework and help reduce repetition across board committees. The Company offers robust client services supported by multiple trading platforms. However, it may consider differentiating the trade commission structure for retail and institutional clients, along with pursuing targeted advertising and outreach initiatives to expand customer reach. While internal policies of the Company are in place, expanding the scope of the same may further improve the internal control framework. Rating outlook takes note of non-compliances highlighted and the penalty imposed thereof by PSX. Going forward, ensuring compliance with all applicable regulations will be important from the rating’s perspective.
Assessment of the Company’s financial profile reflects strong growth in the brokerage revenue on the back of higher market activity amid favorable market conditions, contributing to improved profitability and operational efficiency. Liquidity profile of the Company is considered adequate. Market risk of the Company is low, given reduction in the Company’s proprietary investments. The capitalization profile is supported by a sizeable equity base, in tandem with higher profitability. However, gearing and leverage indicators have weakened. Going forward, continued enhancement in profitability and revenue base, along with improvement in gearing and leverage indicators as well as liquidity profile will be important for the rating.
For further information on this rating, please 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf