Karachi, November 11, 2022 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has maintained entity ratings of MRA Securities Limited (MRA) at ‘A-/A-2’ (Single A Minus/A-Two). 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 ‘Negative’. Previous rating action was announced on October 18, 2021.

Revision in rating outlook is reflective of the downturn in the financial performance of the Company owing to a contraction in market activities. 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. However, a relatively higher equity base 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.

Rating takes comfort from maintenance of market share while growing retail client base. Since last review, sizeable new clients were taken onboard and the client base registered a growth of ~16% vis-a-vis previous year. Going forward, Company plans to continue to focus on increasing the client base through initiatives such as Roshan Digital Account. Materialization of these plans and improvement in profitability profile will remain important for ratings.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/