Press Release

JCR-VIS upgrades rating of Taurus Securities Limited to A (Single A)

Karachi, November 26, 2012: JCR-VIS Credit Rating Company Ltd. has upgraded the medium to long term entity rating of Taurus Securities Limited (TSL) from ‘A-’ (Single A Minus) to ‘A’ (Single A). Short-term rating of TSL is ‘A-2’ (A-Two). Outlook on the rating is ‘Stable’.

The rating decision takes into account the favorable developments in sector dynamics; introduction of Institutional Delivery System (IDS) has notably reduced the settlement risk associated with institutional clients that contribute a major proportion of TSL’s business.

Moreover, the company has managed to remain consistently profitable during significant downturns in the stock market. Even though earnings have come under pressure, cost reduction has allowed the company to sustain overheads in a profitable manner in times of low volumes at the bourses. In the absence of a proprietary book, the company is not directly exposed to market risk. Some indirect risk arises on account of investment in margin trading system and spread transactions.

Given the effective monitoring of receivables, significant margin requirement from retail clients, limits on corporate counterparties and the fact that majority of the institutional clients are members of the IDS, credit risk emanating from core business activity is considered manageable.

Ratings also derive strength from TSL’s majority shareholder, National Bank of Pakistan (NBP), being the largest commercial bank in Pakistan. NBP lends support to TSL in terms of business generation and secured finance facility.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .