Press Release

VIS Upgrades Broker Fiduciary Rating of BMA Capital Management Limited

Karachi, September 27, 2023: VIS Credit Rating Company Ltd. (VIS) has upgraded the Broker Fiduciary Rating of BMA Capital Management Limited (BMA) from ‘BFR3+’ to ‘BFR3++. Outlook on the assigned rating is ‘Stable’. The assigned rating denotes good fiduciary standards. Previous rating action was announced on May 13, 2022.

The rating signifies strong management & client services, internal controls, as well as sound ownership & governance while business & financial sustainability are considered sound.

Assigned rating takes note of the Company’s strong management and client services marked by its geographical presence as well as the employment of various client facilitation tools and resources to support clients in executing transactions. Moreover, availability of research reports are also viewed positively. The Company’s internal controls and regulatory framework is also considered strong. However, enhancement in the overall scope of internal policies may be considered to further enhance the internal control framework.

At present, the Company’s board comprises of three members, increasing board size along with independent representation may enhance its governance framework. While the Company has established four board committees, repetition of members is observed across these committees. Improvement in the same may be considered. Overall, disclosure levels of the company are considered sound. Going forward, rating will be imperative on implementation of the planned initiatives undertaken by the Company.

Assessment of financial profile of the Company indicates deterioration of the Company’s operational earning profile wherein the Company’s profitability profile has taken a toll. With losses reported in FY23 primarily on the back of decline in the brokerage revenue amid contraction in trading volumes, consequently, cost-to-income ratio also came under stress. Market risk is considered moderate, moreover, liquidity profile of the Company is considered adequate. During the year, the Company’s leverage and gearing ratios have declined on a timeline basis while losses incurred by the Company have resulted in a drag on the equity base. Going forward, improvement in operational efficiency, low market exposure along with maintenance of gearing and leverage will remain important for rating.

Further, the Company holds a Trading Right Entitlement certificate (TREC) for Trading & Self Clearing Services issued by the Pakistan Stock Exchange Limited (PSX) since 1992. External auditors of the Company are RSM Avais Hyder Liaquat Nauman Chartered Accountants. Auditors are on the approved list of auditors published by the State Bank of Pakistan (SBP).

For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 106) at (021) 35311861-64 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

VIS Rating Scale

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .