Press Release

JCR-VIS Reaffirms Entity ratings of Taurus Securities Limited

Karachi, June 26, 2015: 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 November 21, 2014.

Ratings assigned to TSL take into account the shareholders’ profile of the company. TSL is a subsidiary of National Bank of Pakistan (NBP), a state owned entity and the largest public sector bank in the country. Remaining shareholding is vested with The Bank of Khyber (BoK) and Saudi Pak. Industrial & Agricultural Investment Company Ltd. (SAPICO).

On a standalone basis, the ratings draw comfort from the conservative risk appetite of the company. TSL does not hold any proprietary book and stock market exposure is limited to ready-future arbitrage transactions. Moreover, exposure in Margin Trading System (MTS) has remained limited. Balance sheet position exhibits variation over the year with trade debt and payables varying according to business activity. Trade debts are created as per normal course of business; adequate client margin monitoring mechanism ensures that these are recovered in a timely manner. Trading limits assigned to institutional clients are as per the Board approved policy which takes into account the risk profile and credit ratings of counterparties. As such, the company does not carry any major liability on its books that may trigger liquidity concerns. Meanwhile, gearing of the company remains negligible on account of low utilization of credit lines.

Profitability of TSL declined during FY14 on account of low brokerage & commission income, a drop witnessed in both institutional and retail income. During the last quarter of FY14, the company launched its online trading portal and expects to achieve growth in retail business from the same.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-71 or fax to 35311872-3.

Mohammed Khalid Ali

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 2015 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