Press Release

VIS Reaffirms Entity Ratings of Taurus Securities Limited

Karachi, March 24, 2022: VIS Credit Rating Company Ltd. has reaffirmed the entity ratings of Taurus Securities Limited (TSL) at ‘A/A-2’ (Single A/A-Two). Outlook on the assigned ratings is ‘Stable’. The long term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-2’ depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. Previous rating action was announced on January 18, 2021.

The assigned ratings derive strength from robust profile of TSL’s major sponsor, National Bank of Pakistan (NBP), a state-owned entity and one of the largest commercial banks in the country. The sponsor has demonstrated both financial and technical support to the company in the past. TSL also has a funding line from its parent.

TSL’s rating incorporates long-standing operational track record in the domestic brokerage industry spanning three decades. Given a dip in market volumes, wherein institutional activity has been significantly depressed, TSL has experienced market share attrition in the past 3-year period. Nevertheless, the management is confident to regain market share as volumes improve and institutional trading rebounds. Given the aforementioned trend, proportion of retail commissions to aggregate has increased on a timeline.

In 2021, TSL’s operating overheads grew in tandem with revenue, translating in a similar efficiency ratio as was noted previously. Capital gain on investments generated through ready-future operations, supported TSL’s bottom line. Return on Average Asset (ROAA) and Return on Average Equity (ROAE) of TSL stayed intact.

Rating incorporates financial risk profile of TSL. Overall liquidity profile is considered satisfactory in view of sizeable liquid assets in relation to total liabilities. Exposure to credit risk and market risk is limited. Leveraging, while increasing on a timeline basis, is considered manageable. The assigned rating remains dependent on maintaining operational metrics and financial risk indicators in accordance with benchmarks for the assigned rating.

For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Methodology - Securities Firms - July 2020
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