Press Release
JCR-VIS reaffirms ratings of Taurus Securities Limited at A- /A-2 with Stable outlook
Karachi, September 25, 2006: JCR-VIS Credit Rating Company Ltd. has reaffirmed the medium to long-term entity rating of Taurus Securities Limited (TSL) at ‘A-’ (Single A minus) with a ‘Stable’ outlook. Short-term rating has also been reaffirmed at ‘A-2’.
The assigned ratings derive strength from implied support of the major sponsoring institution. TSL’s business style has remained conservative over the years. Increasing levels of margin requirements, strict monitoring of the same and absence of a proprietary book has shielded the company against credit and market risk in times of greater volatility. Furthermore, business volumes continue to be derived largely from institutional clients of sound repute. The level of controls is expected to improve further with the deployment of MIS solution, currently under active consideration.
While cautious expansion in terms of operating sites has been undertaken over the last year, periods of lean activity have nevertheless affected the company’s revenues. The volatility inherent in brokerage business is thus reflected in profit reported over the last few quarters and meaningful diversification of business lines has yet to be achieved.
For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.
Faheem Ahmad
President & 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 2006 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .