VIS Maintains Broker Fiduciary Rating of MRA Securities Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- November 14, 2022 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Ltd. (VIS) has maintained Broker Fiduciary Rating of 'BFR3+' to MRA Securities Limited (MRASL). Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is 'Negative'. The rating reflects sound management and client services and internal controls while governance framework and business and financial sustainability is considered adequate.

Assigned rating factors in MRASL's sound internal control framework and management and client servicing procedures, which can be further strengthened through availability of research reports on website along with segregation of trade commission structure between retail and institutional client as well as effective enforcement of customer complaints. Rating also takes into account small board size under governance framework. Also repetition of members has been observed across the committees. Improvement in the same may strengthen governance level.

Revision in rating outlook is reflective of the downturn in the financial performance of the Company owing to a contraction in market activities. Amidst slowdown in market activity, 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...