Karachi, January 02, 2019 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Cyan Limited (CL) at ‘A/A-1’ (Single A/A-One). The long term rating signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-1’ depicts high certainty of timely payment where liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 27, 2017.
Assigned ratings of Cyan Limited (CL) continue to be underpinned by its sponsor profile of Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. CL is primarily focused towards investing in high growth potential companies while maintaining a proprietary book. Given subdued operations in the private equity market, the company has re-strategized itself towards advisory services. Current ratings also reflect CL’s sound liquidity profile, adequate capitalization indicators and experienced management team.
Given the downtick witnessed in the stock market, profitability of CL was adversely impacted in the outgoing year; however, the same picked up pace and a positive bottom line was reported during 9M18. Investment portfolio of the company primarily comprises dividend yielding and growth stocks. As per management, recent losses on the investment portfolio are expected to be recouped over time. Nonetheless, future profitability of the company will continue to remain sensitive to movements in the equity market. Support from its advisory arm will also be monitored over time.
For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk