Press Release

VIS Maintains Entity Ratings of MRA Securities Limited

Karachi, January 24, 2024: VIS Credit Rating Company Limited. (VIS) has maintained entity ratings of MRA Securities Limited (‘MRA’ or ‘the Company’) 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 has been changed from ‘Negative’ to ‘Stable’. Previous rating action was announced on November 11, 2022.

MRA Securities Limited is involved in equity brokerage services, with a particular focus on serving domestic retail clients, high net worth individuals, and institutional investors. The Company is headquartered in Karachi, Pakistan, and operates an additional eight branches within the city. Majority shareholding in MRA is vested with the Rafiq family.

Assigned ratings factor in the distinguished market position of the Company with improved market share and large retail client base. Revision in outlook takes into account the strong growth in core brokerage revenues on account of significant uptick in trading activity in the market post-financial year end. During the last quarter of calendar year 2023, MRA was the leader in terms of value and volume, outpacing the industry players. Ratings also incorporate recent increase in market activity with KSE-100 index recording strong gains and signaling potential for future growth. Nevertheless, the industry remains vulnerable to changes in economic and political climate of the country.

MRA’s revenues and profitability recorded notable improvement in HYFY24. However, revenues continue to be heavily concentrated in brokerage income only. Cost-to-income ratio is comparable to peers, albeit remains on the higher side. Market risk is elevated with sizeable propriety book. For the last two years, profitability has been impacted by losses booked against investment portfolio. The composition of the investment portfolio is fairly diversified with oil and gas, cement, textiles and pharma leading. Managing market risk will remain important for ratings, going forward. Liquidity metrics remain sound with adequate coverages. On the back of strong profitability in HYFY24, equity base registered growth after consistently being impacted in the last 2 years on account of losses. Gearing and leverage metrics depict an increase over time, albeit remain manageable for now. Maintaining the same remains important. Ratings also incorporate governance framework of the Company, which provides room for improvement. Addressing the qualifications highlighted by the auditor in the financial statements remains important for ratings, going forward.

For further information on this rating announcement, please contact Mr. Shahareyar Khan (Ext: 209) at 021-35311861-71 or email at

Sara Ahmed

Applicable Rating Criteria: Securities Firms:

VIS Issue/Issuer Rating Scale:

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