Press Release

VIS Assigns Initial Broker Fiduciary Rating to MRA Securities Limited
 

Karachi, October 18, 2021: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3+’ to MRA Securities Limited (MRASL). Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating signifies adequate governance framework, business and financial sustainability and sound management and client services and internal controls.

Assigned rating takes into account MRASL’s sound internal control framework and management & client servicing procedures, however effective enforcement of compliance procedures with respect to permissible conduct of research analysts and advisors and further enhancement of customer facilitation measures may be considered. Ratings also take into account adequate ownership and governance framework which may be strengthened through increasing the board size and inclusion of certified members.

Owing to the increased market activity, MRASL’s profitability profile witnessed significant improvement on the back of higher one-off capital gains and increase in core brokerage revenue in FY21. The company increased its proprietary exposure at the end of FY21; hence, increasing market risk. Liquidity profile of the company remains adequate while strong equity base and manageable leverage and gearing levels lends support to capitalization indicator. However, market risk emanating out of higher gearing and leverage may need to be monitored closely. While overall company’s financial profile remains adequate, diversifying revenue streams and sustaining operational efficiency will be considered important for ratings.

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. Sara Ahmed (Ext: 207) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk


Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:
https://docs.vis.com.pk/docs/BrokerFiduciary012021.pdf

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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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited