Press Release

VIS Reaffirms Entity Ratings of Cyan Limited

Karachi, January 20, 2025: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed entity ratings of Cyan Limited (‘CYAN’ or the ‘Company’) at ‘A/A1’ (Single A /A One). Medium to long term rating of ‘A’ denotes good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remain ‘Stable’. Previous rating action was announced on January 24, 2024.

Cyan Limited, a Dawood Group Company, is a Public Limited Company incorporated in Pakistan on April 23, 1960 under the Companies Act, 1913 (now Companies Act, 2017). The Company is a subsidiary of Dawood Corporation (Private) Limited (the Parent Company) and is listed on the Pakistan Stock Exchange (PSX). The registered office of the Company is situated in Karachi. CYAN is an investment management company with two principal lines of business namely; Investment in listed equities, and Strategic advisory services.

The assigned ratings incorporate CYAN’s association with the Dawood Group, one of the largest conglomerates in the country, with a diversified presence in key sectors such as fertilizers, PVC, food, power generation, coal mining, LNG storage, and private investments.

CYAN’s management plans to continue its current investment strategy, emphasizing high-dividend-yielding and growth-oriented stocks in the banking, oil & gas exploration, and technology sectors. With continued structural reforms and anticipated declines in interest rates, there is potential for improved business conditions and sustained equity market performance. While the Company’s preferred investment sectors are expected to perform well, the portfolio remains vulnerable to market volatility and sector-specific risks. Any significant shifts in market conditions or economic policy could affect the portfolio’s performance, especially given the limited diversification across asset classes. The ratings are sensitive to market risk management along with maintenance of capitalization indicators.

CYAN has achieved satisfactory results, however, navigating market volatility and economic shifts will be key to sustaining the profitability. Given conservative financial strategy, CYAN’s liquidity and capitalization profiles are expected to remain stable. Going forward prudent management of liabilities and sustained profitability will be important for the assigned ratings

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria:
Non-Bank Financial Companies
https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .