Press Release

VIS Maintains Entity Ratings of Taurus Securities Limited

Karachi, August 17, 2023: VIS Credit Rating Company Ltd. has maintained entity ratings of Taurus Securities Limited (TSL) at ‘A/A-2’ (Single A/A-Two). Outlook on the assigned ratings has been changed to ‘Negative’ from 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 ‘A-2’ depicts good certainty of timely payment. Liquidity factors and Company fundamentals are sound. Access to capital markets is good. Risk factors are small. Previous rating action was announced on March 24, 2022.

Assigned ratings continue to derive strength from the robust profile of sponsors including National Bank of Pakistan (NBP), a state owned entity and one of the largest commercial banks in the country. The other shareholders of TSL are also financial institutions including The Bank of Khyber and Saudi-Pak Industrial and Agricultural Investment Company Ltd. TSL derives support from the sponsors in terms of business generation, presence of seasoned professionals on the Board and availability of clean borrowing lines from its parent company.

Revision in rating outlook takes into account the weakening in operational and key financial metrics; due to slowdown in industry volumes which subsequently led to decline in core revenues and a higher cost-to-income ratio. The Company’s profitability also came under pressure which is expected to remain constrained on account of its equity base and limited size and scope of operations. Ratings also take into account Company’s business risk profile. At present, the Company’s revenues are dependent on core brokerage income which constitute around 84% of the total revenue. Going forward, augmenting revenue base with additional income streams may be considered to reduce operational risk of the Company.

Assigned ratings for TSL factor also in its financial risk profile, with adequate liquidity and improved market risk exposure. The company's exposure to credit risk and market risk is considered minimal. Going forward, ratings remain dependent on continued sponsor support, improvement in operational efficiency and revenue augmentation and diversification together with maintenance of leverage within reasonable levels.

For further information on this rating announcement, please contact Mr. Jahanzaib Alvi (Ext: 104) or the undersigned (Ext: 106) at (021) 35311861-64 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Methodology – Securities Firms - July 2020

VIS Rating Scale

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