Pakistan Credit Rating Agency Maintains Ratings of Optimus Limited


Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity rating of Optimus Limited (OL) at “BBB+”(triple B plus), and the short-term rating at “A2″ (A two). The ratings indicate that there is currently a low expectation of credit risk. Meanwhile, the ratings for both the TFC and Sukuk issue of PKR 500mln and PKR250mln have been maintained at “A” (Single A). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the company’s strong market position in operating lease segment, mainly characterized by its association with Hertz Corporation – a global brand in car rental industry. The company, facing a squeeze in its high-margin long-term business – Hertz Lease – in the wake of prevalent socio-economic environment, intends to cautiously expand its operations. Meanwhile, it is keeping a close check on cost structure to sustain margins. Financial risk of the company is high owing to leveraged capital structure and relatively weak debt servicing capacity. The company has sizeable upcoming debt obligations to repay, for which necessary financing arrangements are in process.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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