Press Release

VIS Maintains Broker Fiduciary Rating of MRA Securities Limited

Karachi, November 14, 2022: VIS Credit Rating Company Ltd. (VIS) has maintained Broker Fiduciary Rating of ‘BFR3+’ to MRA Securities Limited (MRASL). Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Negative’.

The rating reflects sound management and client services and internal controls while governance framework and business and financial sustainability is considered adequate.

Assigned rating factors in MRASL’s sound internal control framework and management & client servicing procedures, which can be further strengthened through availability of research reports on website along with segregation of trade commission structure between retail and institutional client as well as effective enforcement of customer complaints. Rating also takes into account small board size under governance framework. Also repetition of members has been observed across the committees. Improvement in the same may strengthen governance level.

Revision in rating outlook is reflective of the downturn in the financial performance of the Company owing to a contraction in market activities. Amidst slowdown in market activity, 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 while higher equity base relative to peers 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.

MRASL is a public unlisted company principally engaged in provision of equity brokerage services to domestic clients. Majority shareholding in MRA is vested with the Rafiq family. Currently, the brokerage operates through its head office based in Karachi. The company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

For further information on this rating announcement, please contact Ms. Batool Zaidi (Ext: 210) or) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

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 .