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Karachi: VIS Credit Rating Company Limited has reaffirmed the entity ratings of MRA Securities Limited at ‘A-/A2’, underscoring the firm’s solid credit quality and sound liquidity profile. The ratings reflect MRA’s good certainty of timely payment and its strong access to capital markets, with a stable outlook. The most recent rating action was announced in early 2024.
MRA Securities Limited, headquartered in Karachi, specializes in equity brokerage services, catering primarily to domestic retail clients, high net worth individuals, and institutional investors. The company operates eight additional branches in the city and is majority-owned by the Rafiq family. MRA holds a Trading and Self Clearing entitlement certificate from the Pakistan Stock Exchange Limited, and its external auditors are listed in category ‘A’ by the State Bank of Pakistan.
The reaffirmed ratings acknowledge MRA’s robust presence in the stock market, where it is recognized as a leading brokerage house on the Pakistan Stock Exchange in terms of trading volume and value. The company’s financial profile has benefited from strong brokerage revenue growth, driven by increased market activity under favorable conditions, which has bolstered profitability and operational efficiency. Despite the weakening of gearing and leverage indicators, MRA maintains an adequate liquidity profile, supported by a significant equity base and reduced proprietary investments.
Looking ahead, sustained improvements in profitability and revenue, alongside enhancements in gearing, leverage, and liquidity, are deemed critical for maintaining the company’s rating.