January 2, 2019 (MLN): 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 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.
Assigned ratings of Cyan Limited continue to be underpinned by its sponsor profile of Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. The company 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 the sound liquidity profile, adequate capitalization indicators and experienced management team of the company.
Given the downtick witnessed in the stock market, profitability of the company was adversely impacted in the outgoing year; however, the same picked up pace and a positive bottom line was reported during 9M18.
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.