The Pakistan Credit Rating Agency Limited
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Shahzaib Khalid

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PACRA Maintains Broker Management Rating of Optimus Capital Management (Pvt.) Limited, Assigns Positive Outlook

Rating Type Broker Management
(27-Dec-18 )
(04-May-18 )
Action Maintain Initial
Long Term BMR3 BMR3
Short Term - -
Outlook Positive Stable
Rating Watch - -

Optimus Capital Management (Pvt.) Ltd is an emerging brokerage house in Pakistan. The assigned rating takes into account its sound risk management framework, organizational structure and IT infrastructure. The rating entails from zero leveraging and improving retail brokerage. Lately, the company has expanded its research department in order to increase the stock coverage. The company has majority of its revenue from local clients and management has devised a suitable strategy to attract foreign customers which would accumulate revenues. The company has limited exposure to market risk due to no proprietary trading policy. The policies pertaining to IT, AML and risk management have been updated and implemented successfully. The company has no independent and non-executive director on its board and the governance framework needs improvement. Furthermore, the company has adequate capitalization levels with the Net Capital Balance of ~PKR 211mln as at 30th June, 2018. The equity base of ~PKR 315mln provides cushion against potential losses.

The rating is dependent on the management's ability to enhance the volumes and diversity of revenue in order to improve its competitive position in the brokerage industry. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls will bode well for the company.

About the Entity
Optimus Capital Management (Private) Limited, formerly known as Millennium Capital Management (Pvt) Ltd, was incorporated in 2004. The company’s prime business is equity brokerage, financial advisory, equity investments research and corporate finance services to individual and institutional clients.

The company is wholly owned subsidiary of Optimus Holdings (Private) Limited (formerly Peabody Associates Private Limited). The two sponsors of Optimus Holdings, Mr. Asif Ali Qureshi and Mr. Jawad Amjad, have more than two decades of experience in the financial sector of Pakistan. The company’s board is composed of two directors, Mr. Asif Ali Qureshi and Mr. Muhammad Ovais Ahsan. Mr. Asif is the Executive Chairman and Mr. Ovais Ahsan is the CEO of the company.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.