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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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Disclaimer
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 the Broker Management Rating of Optimus Capital Management (Pvt.) Limited

Rating Type Broker Management
Current
(21-Nov-19)
Previous
(24-May-19)
Action Maintain Upgrade
Long Term BMR3+ BMR3+
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the company’s operational framework and focus on system based processes. The company has devised comprehensive IT policy, KYC Risk Management procedures and Disaster Recovery Plan. The management team comprises seasoned professionals that ensures quality of services and has been together for a while. The revenue streams is supplemented by advisory and consultancy income providing cushion against decline in brokerage fee. The management has devised a suitable strategy to attract and operates a reliable source in merger and acquisition. The company has zero leveraged capital structure and adequate capitalization levels with the Net Capital Balance of ~PKR 214mln as at June 30, 2019. The equity base of ~PKR 316mln provides cushion against potential losses. The company has no independent or non-executive director on its board indicating room for improvement in the governance framework.
The rating is dependent on the management's ability to enhance volumes and improve revenues. Meanwhile sustaining competitive position is important. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls is imperative for the rating.

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.