Press Release

JCR-VIS Reaffirms Entity Ratings of Cyan Limited

Karachi, January 2, 2019: 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). The long term rating signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-1’ depicts high certainty of timely payment where liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 27, 2017.

Assigned ratings of Cyan Limited (CL) continue to be underpinned by its sponsor profile of Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. CL is primarily focused towards investing in high growth potential companies while maintaining a proprietary book. Given subdued operations in the private equity market, the company has re-strategized itself towards advisory services. Current ratings also reflect CL’s sound liquidity profile, adequate capitalization indicators and experienced management team.

Given the downtick witnessed in the stock market, profitability of CL was adversely impacted in the outgoing year; however, the same picked up pace and a positive bottom line was reported during 9M18. 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. Support from its advisory arm will also be monitored over time.

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 2019 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