Press Release

VIS Upgrades Broker Management Rating of MRA Securities Limited

Karachi, April 12, 2021: VIS Credit Rating Company Ltd. VIS) has upgraded the Broker Management Rating of MRA Securities (MRA) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 10, 2020.

The rating signifies sound board level governance, internal and external control environment is robust, HR & IT services are strong, while compliance and risk management frameworks and financial management are adequate and customer services are sufficiently proactive.

Upgrade in rating takes note of MRA’s acquisition of new licenses, improvement in relationship with clientele and strong IT & HR infrastructure. However, during the period under review, the company was charged with a penalty by SECP for non-compliances of AML related matters. The company is taking corrective actions by inducting additional staff in the compliance department to overcome the same.

On the regulatory front, room for improvement exists in board size to avoid repetition of common committee members, presence of more than one independent director would add to governance levels. During the year, MRA acquired advisory and underwriting licenses. The company’s internal control framework is considered sound however; inclusion of director’s report, CEO’s statement and Statement of Compliance with Code would enhance disclosure level. Employee trading policy may also be enhanced by adding guidelines for holding period of securities and trading in blackout periods. HR infrastructure and IT status is considered strong, although data backup with a third party is recommended.

Assessment of financial profile indicates improvement in profitability and equity base on account of uptick in industry trading volumes during FY20. Recurring expenses are reported to be 79% in relation to recurring revenues; failure to curtail administrative expenses has led to an increase in efficiency ratio. Gearing has declined on a timeline basis, during FY20 gearing stood at 0.5x (FY19 0.7x) Going forward, sustainability of the same shall be observed over time.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2020

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