Press Release

JCR-VIS Reaffirms Entity Ratings of Taurus Securities Limited

Karachi, December 23, 2011: JCR-VIS Credit Rating Company Ltd. has reaffirmed the entity ratings of Taurus Securities Limited (TSL) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the rating is ‘Stable’.

Ratings assigned to TSL incorporate the strength of the majority shareholder, National Bank of Pakistan, the largest commercial bank in the country. Stand-alone financial profile of the company has remained steady, with prudent margin policy and limits on counterparties having facilitated effective monitoring & realization of trade receivables.

In the backdrop of lower trading volumes, revenues from brokerage operations have declined. The company has however been able to capture a larger market share of traded volumes in recent periods, which has facilitated in containing the decline in brokerage revenues. In order to bridge the gap between brokerage revenues and administrative expenses, which has widened over time, the company has been deploying excess liquidity in MTS and Futures Trading to generate supplementary revenues. Management’s focus on cost control through branch consolidation and a compensation structure linked to business activity has helped the company to maintain a low cost base and remain marginally profitable, despite losses faced by peers.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-71 or fax to 35311872-3.



Faheem Ahmad
President & CEO

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 December 23, 2011 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.