Press Release
VIS Reaffirms Entity Ratings of Taurus Securities Limited
Karachi, October 22, 2025: VIS Credit Rating Company Ltd. has reaffirmed the entity ratings of Taurus Securities Limited (TSL) at ‘A/A2’ (Single A/A Two). Outlook on the assigned ratings is ‘Stable’. The long-term rating of ‘A’ reflects good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A2’ Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Previous rating action was announced on October 04, 2024.
Taurus Securities Limited (‘TSL’ or ‘the Company’) is a public unquoted company, incorporated in Pakistan in 1993. The registered office of the Company is situated in Karachi, Pakistan. It is a subsidiary of National Bank of Pakistan (the Holding Company), which holds 58.32% of the shareholding of the Company. The Company's principal activities include stock brokerage, research analysis, and fund placements. The Company holds a Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self Clearing Services. The Company is also a license holder of Pakistan Mercantile Exchange Limited (PMEX). External auditors of the Company are BDO Ebrahim and Co. Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned ratings continue to draw strength from the strong sponsor profile, with majority shareholding vested with National Bank of Pakistan (NBP), a state-owned institution, followed by Bank of Khyber (BoK) and Saudi Pak Industrial & Agricultural Investment Company Ltd. (SAPICO). All three sponsors possess sound financial standing and established track records in the financial sector. Support from the sponsors extends through financial and operational synergies, business referrals, and oversight from experienced professionals on the Board. In addition, ratings also incorporate continuity of experienced Management.
The ratings further incorporate the Company’s improved financial performance, as reflected by growth in brokerage income amid an uptick in market activity during the review period. The financial risk profile remains sound, supported by very low gearing and adequate liquidity buffers, and the absence of proprietary investments, which limits exposure to market risk. Improvement was also noted in the cost-to-income ratio during CY24.
Nonetheless, the ratings remain constrained by the elevated business risk inherent to the brokerage sector, characterized by its cyclical nature, fragmented structure, and high sensitivity to macroeconomic conditions. Going forward, enhancement in revenue scale and diversification, alongside sustained profitability and operational efficiency will remain important for ratings.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Broker Entity Rating:
https://docs.vis.com.pk/Methodologies-2025/BrokerEntityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf