Press Release

JCR-VIS Reaffirms Entity Ratings of R.F.J. Equity (Private) Limited

Karachi, March 7, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed entity ratings of R.F.J Equity (Private) Limited (REL) at ‘BB/A-3’ (Double B/A-Three). Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on December 1, 2015.

Ratings of REL take into account the sponsor support of Westbury Group of Companies (WGC), a conglomerate having presence in the financial and industrial sectors. Since brokerage operations of REL are relatively inactive, profitability of REL has been entirely dependent on returns from the investment portfolio. Profitability of REL substantially declined in FY16 on account of higher realized losses on its investments. As a result, the company incurred a negative bottom line of Rs. 9.3m in 2016 vis-à-vis a profit of Rs. 29.9m last year. To date, there is no debt on their books. Going forward, the company intends to take cautious decisions when investing in the stock market. Given that managerial responsibility is vested primarily with the CEO, the company has significant key person risk.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at (021)35311861-71 or fax to (021)35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Methodology - Securities Firms Rating (May 2015)

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 2017 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