Press Release

JCR-VIS Reaffirms ratings of Taurus Securities Limited at A/A-2

Karachi, November 21, 2014: 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 rating is ‘Stable’. The previous rating action was announced on December 31, 2013.

The ratings assigned to TSL take into account the implicit support of sponsors. The company is primarily backed by National Bank of Pakistan (NBP), a state owned entity and one of the largest commercial banks in the country. Other shareholders of TSL are also financial institutions including The Bank of Khyber and Saudi-Pak Industrial and Agricultural Investment Company (Pvt.) Ltd.

TSL continues to maintain a conservative stance and is primarily engaged in equity brokerage services. The company does not hold any proprietary book and stock market exposure is limited to ready-future arbitrage transactions. The management participates in Margin Trading System (MTS) on a limited scale.

TSL posted improved profitability in line with market activity that has remained healthy in 2013 and HY14. KSE-100 index continued to depict an upward trend attracting higher share volume over the period. While the company restricted itself to selective scrips, it was able to generate higher revenue primarily from institutional clients inclined towards higher priced shares. Liquidity profile of TSL is considered satisfactory. The company does not carry any major liability on its books that may trigger liquidity requirements.

Recently, the company experienced some turnover at senior management positions with one key position still vacant. Given its shareholding structure, the corporate governance rules 2013 for public sector companies are applicable to TSL; TSL has applied to the regulatory authority, for seeking exemption from certain provisions of the Code.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-71 or fax to 35311872-3.

Jamal Abbas Zaidi
Deputy CEO

Applicable rating criteria: Methodology: Securities Firms (Sep 2003)

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 2014 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