Press Release

JCR-VIS Assigns Entity Ratings of ‘A-/A-2’ to BMA Capital Management Limited

Karachi, October 5, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial entity ratings to BMA Capital Management Limited (BMA) of ‘A-/A-2’ (Single A-Minus/A-Two). Outlook on the assigned ratings is ‘Stable’.

Incorporated in 1992, BMA is primarily engaged in brokerage services for equity, fixed income and interbank foreign exchange along with corporate advisory services. The company has two wholly owned subsidiaries namely BMA Asset Management Company Limited and BMA Energy Limited. Half of ownership is vested with Ganjbaksh Mauritius Limited while remaining shareholding is represented by individual investors belonging to the Mazhar Family.

Senior management comprises individuals having experience of operating in domestic as well as foreign financial markets. The company serves domestic and foreign institutions along with retail investors. Over past half-decade, revenue has showcased sizeable growth on the back of greater proportion of income from higher margin foreign institutions. Sustainability of foreign business is a rating determinant and would be tested over time.

Growth in asset base has largely been financed by liabilities on account of short term borrowings utilized to finance exposure deposit required by the exchange. Despite steady year-on-year earnings, high dividend payout during FY14-16 has led to decline in equity base. Nevertheless, total equity stands at a satisfactory level vis-à-vis peers. In order to manage balance sheet risk, BMA has recently introduced limits for leverage, underwriting and proprietary equity investments; the assigned ratings are dependent upon compliance with the same, going forward.

For further information on this rating announcement, please contact the undersigned (Ext: 234) or Mr. Mohammed Khalid Ali (Ext: 241) at 021-35311861-71 or fax to 021-35311872-3.

Javed Callea

Applicable rating criteria: Methodology - Securities Firms Rating (May 2015)

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 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited