Press Release

JCR-VIS Assigns Initial Ratings of A+/A-1 to Cyan Limited

Karachi, May 16, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of ‘A+/A-1’ (A Plus/A-One) to Cyan Limited (CL). Outlook on ratings is ‘Stable’.

CL has strong institutional backing with majority shares vested with Dawood Corporation (Pvt.) Limited. Sponsors are one of the largest industrial groups in the country having presence across several sectors including financial services. The company holds investment in capital markets with a business plan to venture into private equity. These exposures are likely to be taken though a separate subsidiary; thereby limiting the liability of the company. The management has made significant progress towards developing detailed investment criteria and identification of potential clients for private equity deals. CL benefits from the presence of eminent professionals on its board and a qualified management team with relevant experience in their respective domains.

The assigned ratings take into account adequate capitalization and strong liquidity profile of the company. The company is completely equity financed and as such there are no plans to mobilize debt over the foreseeable horizon. CL has built a sizeable investment portfolio largely invested in listed equities while the remaining portion comprises cash funds and government securities. Exposure in listed equities mainly includes scrips of blue chip companies regularly traded in the market. CL was able to benefit from the upward rally in stocks over the last two years with returns largely tracking the benchmark index.

The management has developed a comprehensive policy framework. The internal audit function is outsourced to a reputable audit firm while an integrated ERP system is implemented for core operations. Future profitability remains contingent upon market conditions. Moreover, deployment in private equity will be tested over time for asset quality and returns.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool (Ext: 604) at 35311861-71 or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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 2014 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .