Press Release

JCR-VIS revises Outlook on the rating of Taurus Securities Limited to Stable

Karachi, January 4, 2010: JCR-VIS Credit Rating Company Ltd. has maintained the entity ratings of Taurus Securities Limited (TSL) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the rating has been revised from ‘Negative’ to ‘Stable’.

The rating action incorporates TSL’s focus on cost control that allowed the company to tide over the period of stock market turmoil in second half of 2008 while continuing to post profitable results despite drastic decline in market volumes. The company has also been able to insulate itself from investment losses on account of its policy of not maintaining a proprietary equity portfolio. While stock market activity recovered in 2009, brokerage commission income has still remained subdued during the period resulting in low profitability. Brokerage commission is still the major contributor to profitability followed by income on bank deposits and fund placements, though its proportion in the revenue mix has declined over the last few years.

The rating also incorporates the implicit support of majority shareholder, National Bank of Pakistan (NBP), in terms of credit lines sanctioned to the company during a period when a number of banks froze sanctioned credit lines to the brokerage sector. JCR-VIS will continue to monitor the company’s performance, which is still closely linked to stock market activity.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Mr. Zia Usmani (Ext: 507) at 35311861-71 or fax to 35311872-3.

Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2010 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited