Press Release

VIS Reaffirms Entity Ratings of BMA Capital Management Limited

Karachi, October 17, 2022: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of BMA Capital Management Limited (BMA Capital) at ‘A-/A-2’ (Single A Minus/A-Two). Long-term rating of ‘A-’ reflects good credit quality with adequate protection factors. Risk might fluctuate depending on the state of the economy. Short-term rating of ‘A-2’ signifies good certainty of timely payment where liquidity factors are sound and good access to capital markets. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 15, 2021.

The assigned rating draws support from sustained market share and strong market presence of the Company with a network of 21 branches nationwide. The Company has an established retail clientele, which has continued to grow year over year. Growth of 38% was registered in retail clientele in FY2022, attributable to Company’s business strategy of digital client on boarding in order to expand market penetration. Ratings also take into account operational profitability of the Company. In spite of significant decline in market activity, Company was able to post operating profits, albeit lower than previous year. Company has been able to sustain its efficiency levels. Conservative asset allocation coupled with medium size proproetaitary book of the Company translates into adequate liquidity profile while short term investment to equity ratio remained in line with the benchmark for the assigned rating. However, managing market risk exposure will remain a key area from ratings perspective.

Reaffirmation of the rating also factors in improved capitalization structure. Maintenance of low gearing and leverage ratio will be important from the ratings perspectives. Going forward, future business strategy is focused on cost optimization with no new branches in pipeline during the rating horizon, however, clientele growth will continue to be a focus area of management through digital channels. On the corporate advisory front, there are adequate deals in pipeline and the revenue contribution is expected to remain healthy over the rating horizon.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) at 021-35311861-71 or email at

Sara Ahmed

Applicable rating criteria: Securities Firms Rating (July 2020)

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