Press Release

JCR-VIS Reaffirms Entity ratings of Taurus Securities Limited

Karachi, June28, 2016: 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 June 26, 2015.

The assigned ratings are underpinned by the sponsors’ profile, with major shareholding vested with National Bank of Pakistan (NBP), largest public sector bank in the country. Remaining interest is held by Bank of Khyber and Saudi Pak Industrial and Agricultural Investment Company Limited.

Ratings encompass conservative risk appetite of the company on standalone basis. The company is involved in plain vanilla brokerage with no proprietary book. Any stock market exposure taken by TSL is limited to ready-future arbitrage transactions. The company may consider diversifying its revenue stream going forward. Exposure to Margin Trading System (MTS) also remained minimal. Moreover, TSL has not participated in any underwriting activity to date and neither does it envisage participation in the same, going forward.

Given nature of operations, trade debts vary with the level of business activity. However, timely recovery of the same is ensured through adequate client margin monitoring mechanism. Moreover, liquidity profile of the company is considered sound in view of low gearing and absence of any sizeable liability on its books which may trigger liquidity concerns. Profitability of the company remained a function of level of activity in the stock market. With initiation of online trading facility, commission income generated from retail clients increased. Majority of revenue generated stems from stock market activity, which exposes the company to volatility of the stock market.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Mohammed Khalid Ali (Ext: 508) at (021)35311861-71 or fax to (021)35311872-3.


Applicable Rating Criteria: Methodology – Securities Firms Rating (May 2015)

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 2016 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