VIS Maintains Stable Ratings for Muhammad Munir Muhammad Ahmad Khanani Securities

Karachi, VIS Credit Rating Company Ltd. (VIS) has reaffirmed the entity ratings of Muhammad Munir Muhammad Ahmad Khanani Securities (MMMK) at ‘A-/A-2’, indicating a stable outlook and good credit quality with a solid liquidity position and access to capital markets.

According to VIS Credit Rating Company Limited, MMMK, an unlisted public limited company, specializes in equity and commodity brokerage, underwriting, and corporate advisory services, with significant operations across major Pakistani cities. The firm's substantial market share and expanding customer base, particularly in the retail sector, have been key to its competitive standing, further emphasized by its active engagement in new customer acquisitions and online services.

The financial assessment for MMMK shows an improved profit profile for the fiscal year 2023, recovering from a previous year’s loss driven by an unrealized loss on its investment portfolio. Although operational efficiency faced inflationary challenges and increased credit loss provisions, a healthier cost-to-income ratio was observed due to increased market activity, boosting core revenues and profitability.

The company’s extensive proprietary trading activities indicate exposure to market risks, with profitability experiencing fluctuations based on market dynamics. However, its liquidity remains adequate, supported by a strong capital structure characterized by low leverage and a robust equity base, which despite a dip last year, has risen significantly.

The focus for MMMK going forward will be on maintaining its capitalization profile and effectively managing market risks to uphold its current credit ratings.