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The Pakistan Credit Rating Agency Limited
Press Release

Date
21-Nov-19

Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Providus Capital (Pvt.) Limited

Rating Type Entity
Current
(21-Nov-19)
Previous
(26-Jun-19)
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings reflect company's debt free capital structure, diversified revenue stream and strong liquidity position. The ratings incorporate the company's consistent market share and supplementary income providing cushion against decline in brokerage fee. Though modest, the company maintains profitability in tough prevailing environment. The Company has adequate ownership and governance framework. Experienced management, sound risk management and compliance procedure are in place. Meanwhile, governance framework can be strengthened with independent oversight. The Net Capital balance and equity of Company stood at ~PKR 214mln and ~PKR 315mln, respectively, at the end June 2019.
The ratings are dependent on the company’s ability to strengthen its emerging position and improve revenues. Retention of the key personnel, improvement in governance and sustainability of profits is critical for ratings. Meanwhile, upholding strong internal controls and diligent monitoring of risks is important.

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.