VIS Reaffirms Entity Ratings Of Taurus Securities
VIS Credit Rating Company Limited has reaffirmed the Entity Ratings (ER) of Taurus Securities Limited at single A/A-Two
The long-term rating of "A" 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-2" depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. Previous rating action was announced on December 31, 2018, said a press release on Tuesday.
The assigned ratings continue to derive strength from robust profile of TSL's sponsors including National Bank of Pakistan, a state owned entity and one of the largest commercial banks in the country, along with manageable leverage and liquidity indicators. TSL also benefits from a funding line from its parent.
However, ratings are constrained by weakening in brokerage sector outlook, declining value and volume of shares traded and resultant pressure on TSL's profitability profile & capitalization levels.