Press Release

JCR-VIS Reaffirms ratings of Taurus Securities Limited at A/A-2

Karachi, December 31, 2013: JCR-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 rating is ‘Stable’.

The ratings incorporate the implicit support of majority shareholder, National Bank of Pakistan (NBP). The ratings also take into account the conservative risk profile of the company. The company does not carry any meaningful stock market exposure. Market risk associated with equity holdings is hedged by simultaneous sale in the futures market. On the equity brokerage side, credit risk arising from retail clients is managed by way of active monitoring of client positions and margins. In case of institutional clients, the company has established counterparty limits, based on financial strength. Moreover, the introduction of Institutional Delivery System (IDS) has eliminated the need for funding trades of clients, which are members of IDS. The company is amongst the few local brokerage houses catering to foreign clients.

Karachi Stock Exchange Limited (KSEL) depicted healthy trading volumes in 2012 with an average of 196.7m shares (FY11: 96.9m) per day; the trend continued in HY13. TSL was able to benefit from the increased activity; the company was able to capture a larger market share in HY13. Accordingly, profitability improved in FY12; the same level has been maintained in HY13. Future revenue generation and profitability will remain contingent upon market conditions and ability of the company to enhance market share.

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 2013 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .