Press Release

VIS Assigns Broker Management Rating to MRA Securities Limited

Karachi, April 10, 2020: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR2’ to MRA Securities Limited (MRA). Outlook on the assigned rating is ‘Stable’.

The rating signifies sound internal controls, client relationship, HR & IT services and risk management while regulatory compliance levels, external control framework and financial management are considered adequate.

Assigned rating reflects MRA’s moderate leveraged structure, sustained market share and adequate capitalization & liquidity levels. Rating takes note of experienced management team, satisfactory risk management and compliance procedures in place. In terms of corporate governance, board level committees are though in place, same members in all board committees reduce the effectiveness. The same may be addressed through inclusion of additional directors on board. Internal control framework may be strengthened through sharing of policies with both staff and customers while employee trading guidelines may prescribe a minimum holding and blackout period. Furthermore, appointment of ‘A’ category of external auditors and inclusion of CEO statement and Statement of Compliance with Code in annual accounts as per the brokerage regulations would add to quality of external control environment.

Assessment of earning profile indicates improvement in HFY20; however, there may be re-measurement losses on investments in view of substantial decline in equity market post COVID-19 outbreak. Going forward, diversification of business activity may provide support to the company’s overall financial risk profile.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 202) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk





Faryal Ahmad
Deputy CEO


Applicable Rating Criteria: Broker Management Ratings 2017
http://vis.com.pk/docs/BMR201701.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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .