Press Release

JCR-VIS Reaffirms Entity Ratings of Cyan Limited at ‘A/A-1’

Karachi, December 27, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Cyan Limited (CL) at ‘A/A-1’ (Single A/A-One). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 13, 2016.

Assigned ratings of Cyan Limited (CL) derive strength from its sponsors including Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. On a standalone basis, current ratings reflect CL’s sound liquidity profile, adequate capitalization indicators and experienced management team. CL is primarily focused towards investing in high growth potential companies while maintaining a proprietary book.

Other than managing a portfolio of marketable securities, the company’s business plan also envisages investments in private equity deals; no deals have been signed under this investment class as yet. The company has historically re-strategized plans for developing its private equity portfolio. Nonetheless given the prevailing challenges of private limited companies, CL also plans to enter into strategic advisory services along with private equity. Developments in this regard are yet to materialize.

Given the recent downward trajectory witnessed in the stock market, profitability of CL was negatively affected during 9M17. Investment portfolio of the company primarily comprises dividend yielding and growth stocks. As per management, recent losses on the investment portfolio are expected to be recouped over time. Nonetheless, future profitability of the company will continue to remain sensitive to movements in the equity market.

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

Jamal Abbas Zaidi

Applicable Rating Criteria: Non-Bank Financial Companies (October 2017)

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

JCR-VIS Credit Rating Company Limited