Press Release

JCR-VIS Reaffirms Entity Ratings of Taurus Securities Limited

Karachi, October 2, 2017: JCR-VIS Credit Rating Company Ltd. has reaffirmed the entity ratings of Taurus Securities Limited (TSL) at ‘A/A-2’ (Single A/A-Two). Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on June 28, 2016.

Taurus Securities Limited (TSL) is principally engaged in provision of equity brokerage services with operations conducted through its head office based in Karachi and one branch in Peshawar. TSL is a subsidiary of National Bank of Pakistan (NBP) with residual ownership of Bank of Khyber (BOK) and Saudi Pak Industrial & Agricultural Investment Company Limited. Assigned ratings take into account the robust profile of sponsors as well as low standalone risk profile of TSL.

TSL’s investment strategy entails ready futures arbitrage transactions thereby eliminating market risk. TSL does not undertake margin financing; transactions pertaining to margin trading system are also limited thereby limiting TSL’s exposure. Furthermore, TSL has not undertaken any underwriting transactions nor do they plan to in the future. The settlement risk in TSL is low in comparison to peers, which is reflected in TSL’s outstanding rating.

Although profitability declined in 2016, the same has recovered in HY17 as indicated by improvement in operating efficiency as well as sizeable capital gains realization of Pakistan Stock Exchange (PSX) shares. Revenues have improved which is in line with TSL’s strategy of procuring retail business. However, weakening in financial performance of TSL compared to its peers would need to be addressed going forward.

Despite increase in short term borrowing, gearing and leverage of the business remain at manageable levels. Furthermore, the overall liquidity profile is considered sound.

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

Javed Callea

Applicable Rating Criteria: Methodology - Securities Firms Rating (June 2017)

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