Press Release

VIS Assigns Initial Entity Ratings to MRA Securities Limited

Karachi, February 3, 2020: VIS Credit Rating Company Ltd. (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to MRA Securities Limited (MRA). 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.

Incorporated in 2000, MRA Securities Limited (MRA) is engaged in provision of equity brokerage services with domestic retail clients representing its primary commission source. The assigned ratings reflect the company’s ability to retain its revenues in the backdrop of low volumes and depressed equity market returns. Though modest, the company maintains profitability in prevailing environment. Experienced management, satisfactory risk management and compliance procedures are in place. However, ratings are constrained by governance framework of the company which may be improved through inclusion of additional directors and increased oversight. The assigned ratings also take into account the 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 low leveraged capitalization, retention of key personnel, improvement in governance 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: 201) or Mr. Muhammad Ibad Desmukh (Ext: 205) at 021-35311861-71 or fax to 021-35311872-3.

Javed Callea

Applicable rating criteria: Methodology - Securities Firms Rating (June 2017)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 .

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