Press Release

VIS Assigns Negative Outlook to Entity Ratings of MRA Securities Limited

Karachi, November 11, 2022: VIS Credit Rating Company Ltd. (VIS) has maintained entity ratings of MRA Securities Limited (MRA) at ‘A-/A-2’ (Single A Minus/A-Two). Long-term rating of ‘A-’ signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short-term rating of ‘A-2’ depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. Outlook on the assigned ratings is ‘Negative’. Previous rating action was announced on October 18, 2021.

Revision in rating outlook is reflective of the downturn in the financial performance of the Company owing to a contraction in market activities. MRASL’s profitability profile weakened led by losses on the back of capital loss and decrease in core brokerage revenue in FY22. Market risk remains elevated with a sizeable propriety book. Liquidity profile of the Company remains adequate. However, a relatively higher equity base and manageable leverage and gearing levels extends support to capitalization indicators of the Company. Going forward, with market performance projected to remain subdued, profitability is expected to remain under pressure, which will remain important for rating perspective.

Rating takes comfort from maintenance of market share while growing retail client base. Since last review, sizeable new clients were taken onboard and the client base registered a growth of ~16% vis-à-vis previous year. Going forward, Company plans to continue to focus on increasing the client base through initiatives such as Roshan Digital Account. Materialization of these plans and improvement in profitability profile will remain important for ratings.

For further information on this rating announcement, please contact Mr. Amin Hamdani (Ext: 217) at 021-35311861-71 or email at info@vis.com.pk.





Sara Ahmed
Director

Applicable rating criteria: Securities Firms Rating (July 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/SecuritiesFirm202007.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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .