JCR-VIS Reaffirms Entity Ratings of Cyan Limited at ‘A/A-1’

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JCR-VIS Reaffirms Entity Ratings of Cyan Limited at ‘A/A-1’

December 27, 2017

Karachi, December 27, 2017 (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). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 13, 2016.

Assigned ratings of Cyan Limited (CL) derive strength from its sponsors including Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. On a standalone basis, current ratings reflect CL’s sound liquidity profile, adequate capitalization indicators and experienced management team. CL is primarily focused towards investing in high growth potential companies while maintaining a proprietary book.

Other than managing a portfolio of marketable securities, the company’s business plan also envisages investments in private equity deals; no deals have been signed under this investment class as yet. The company has historically re-strategized plans for developing its private equity portfolio. Nonetheless given the prevailing challenges of private limited companies, CL also plans to enter into strategic advisory services along with private equity. Developments in this regard are yet to materialize.

Given the recent downward trajectory witnessed in the stock market, profitability of CL was negatively affected during 9M17. 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.

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

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