Press Release

VIS Maintains Entity Ratings of Cyan Limited

Karachi, January 24, 2024: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Cyan Limited (‘CYAN’ or the ‘Company’) at ‘A/A-1’ (Single A/A-One). Medium to long-term rating of ‘A’ indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A-1' indicates High certainty of timely payment; Liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned rating has been revised from ‘Negative’ to ‘Stable’. Previous rating action was announced on November 14, 2022.

Cyan, a subsidiary of Dawood Corporation (Private) Limited, is a public listed company operating under the Dawood Group (DG). CYAN is an investment management company with expertise in handling investments in public stocks and offering strategic advisory services. The Company has experienced a notable shift in leadership, including the appointment of Mr. Abdul Samad Dawood as Chairman and Mr. Mohammad Shamoon Chaudry as CEO. Additionally, new appointments have been made for the positions of Chief Financial Officer and Company Secretary.

The assigned rating incorporates the Company’s association with DHG, a major conglomerate with diversified interests across various sectors and a significant presence in the country's economy. During 2022-2023, the Company has taken measures to reduce business and financial risks by consolidating its various operations, deleveraging its balance sheet to mitigate the impact of interest rate fluctuations, and focusing on dividend yielding stocks for risk management. Nonetheless, there is a persistent market risk associated with the portfolio's high concentration in specific sectors and individual securities.

During 9M’CY23, the Company's investment portfolio yields surpassed those of the benchmark KSE-100 index, marking a significant improvement from the previous year's losses. This performance aligns with the positive trend observed in the KSE-100 index during the same period. The revision in rating outlook is due to an improvement in the Company’s financial risk profile, as reflected by its healthy liquidity and strong capitalization indicators. Meanwhile, the ratings are constrained by the inherent market risk of equity investment and market volatility in an emerging stock exchange market. The ratings are dependent upon market risk management through risk diversification and reducing concentration in portfolio along with maintenance of capitalization indicators.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA at 042-35723411-13 (Ext. 8004) and/or the undersigned at 021-35311861-64 (Ext. 207) or email at

Sara Ahmed

Applicable Rating Criteria: Non-Bank Financial Companies
VIS Rating scale

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