Press Release

VIS Maintains Entity Ratings of Cyan Limited

Karachi, November 11, 2021: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Cyan Limited (CL) at ‘A/A-1’ (Single A/A-One). Outlook on the assigned rating has been revised from ‘Negative’ to ‘Stable’. Previous rating action was announced on January 1, 2021.

CL is principally engaged in investment in public equities market, with an objective to pursue active returns. During the period under review (2020 & 1H2021), the company’s profitability metrics were swayed by upwards, as portfolio returns notably exceeded benchmark returns. As a result, CL’s efficiency ratio and RoAA/RoAE has depicted notable improvement.

The assigned rating is constrained by the lack of revenue stream diversification as earning profile of the company is largely dependent on dividend income and capital gains. Cognizant of the significant exposure to market risk and lack of diversification in revenue stream, the management plans to diversify its topline by providing advisory services to SME’s to get listed on newly launched GEM board of PSX. Materialization of new revenue streams will be tracked over time.

Gearing and leverage indicators stayed intact. Liquidity profile of the company remains strong, given that investment in listed equities is the mainstay of operations. Given strong profitability, and adequate retention, the company’s equity base has grown by 56% since Dec’18.

Assigned ratings continue to derive strength from strong sponsor profile (majority owned by Dawood Hercules - DH Group) and adequate corporate governance infrastructure along with the presence of qualified and seasoned professionals in the management team.

For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk mailto:info@vis.com.pk






Javed Callea
Advisor

Applicable Rating Criteria: Non-Bank Financial Companies (March 2020)
https://docs.vis.com.pk/docs/NBFCs202003.pdf

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 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 November 11, 2021 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.