Press Release

VIS Reaffirms Entity Ratings of MRA Securities Limited

Karachi, December 21, 2020: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of MRA Securities Limited (MRA) at ‘A-/A-2’ (Single A Minus/A-Two). The 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 ‘Stable. Previous rating action was announced on January 3, 2020.

The assigned are underpinned by company’s ability to increase revenues and profitability in prevailing environment. The ratings also incorporate cyclical nature of the brokerage industry, which depicts sensitivity to changing market volumes. Improvement in internal audit, compliance and corporate governance has been noted. However, efficiency level has weakened in FY20 due to greater growth in operating expenses vis-à-vis recurring revenues. Moreover, ratings remain constrained by company's exposure to market risk due to its proprietary book, moderate leveraged structure, sustained market share and adequate capitalization & liquidity levels. Diversification of revenue sources is needed to lower risk of volatility in earnings. The ratings are dependent on maintaining or reducing leverage, retention of key personnel and sustainability of profits. Meanwhile, upholding strong internal controls and diligent monitoring of risks is important.


For further information on this rating announcement, please contact the undersigned (Ext: 306) or Muhammad Tabish (Ext: 205) at 021-35311861-71 or fax to 021-35311872-3.







Faryal Ahmad Faheem
Deputy CEO

Applicable rating criteria: Methodology - Securities Firms Rating (June 2017)
http://vis.com.pk/kc-meth.aspx

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .