Press Release

VIS Reaffirms Broker Management Rating of BMA Capital Management Limited

Karachi, March 27, 2020: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of BMA Capital Management Limited (BMA) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on January 24, 2019.

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

Reaffirmation of rating factors in BMA’s long-standing experience in securities broking business, existing market position and improvement witnessed in earning profile. Rating also takes note of strong risk management and compliance levels. Presence of independent director (ID) on board enhances board level governance; however, ID with relevant experience would add more value to the board. Formation of Risk Management & HR Committee, as planned by senior management, would further enhance corporate governance. Updating existing policies and a development of full scale conflict of interest policy would strengthen the overall internal control environment. Moreover, downward change in category of existing external auditor has been noted which is not aligned with CGR best practices.

Assessment of financial profile indicates considerable improvement in bottom-line profitability during HFY20. Curtailment of admin expenses and support from other income has contributed positively. Despite revenue base being diversified through brokerage corporate advisory arm; income generated from the same remains limited. Dividend income has witnessed decline on a timeline basis.

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

Faryal Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 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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