The Pakistan Credit Rating Agency Limited
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Hassan Ali

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PACRA Maintains the Entity Ratings of Optimus Capital Management (Pvt.) Ltd

Rating Type Entity
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The Entity Ratings of Optimus Capital Management (Private) Limited demonstrate its sound ability to retain its market share in lackluster equity market volumes. The rating incorporates the company's emerging position in brokerage industry on the back of established institutional client relationships and diversified product slate. The company as a policy prohibits proprietary trade exposure in the market. The company has clearly defined its organizational structure with most of the heads reporting to CEO. Seasoned top management, sound risk management and compliance procedures provides support to the rating, whereas, the governance framework can be strengthened further. The management has devised a suitable strategy to expand its clientele and increase its market share. The equity brokerage revenue stream and volumes are building up gradually. Moreover, the company has a debt-free capital structure, which signifies low financial risk. The equity base of the company stood at ~PKR 327mln at end Dec-18.
The ratings are dependent on the company’s ability to strengthen its emerging position in the industry. 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.