Press Release

VIS Assigns Initial Ratings to Optimus Limited

Karachi, August 3, 2023: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘BBB+/A-2 (Triple B plus/ A-Two) to Optimus Limited (“OL”). Long-term entity rating of ‘BBB+’ denotes adequate credit quality. Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short-term entity rating of ‘A-2’ indicates good certainty of timely payment, sound liquidity factors and company fundamentals. Access to capital markets is good. Risk factors are small. Outlook on the assigned ratings is ‘Stable’.

Optimus Limited operates as a car rental company and is the exclusive licensee of ‘Hertz’ in Pakistan. Hertz Global Holdings is a globally renowned car rental business operating in 150 countries. The Company offers long-term vehicle leases to multinational corporations and short-term rental services to corporates, hotels and individuals. OL also operates as a General Sales Agent for Hertz, facilitating outbound car rentals from Pakistan. The Company is owned by Ithaca Capital (Private) Limited, which is an investment holding company and private equity group that also holds investments in Mustang Pakistan Limited, Ravi Automobiles (Private) Limited, Bottleco (Private) Limited and Calcorp Limited.

Assigned ratings incorporate association of Optimus Limited with a global franchise, allowing the Company a competitive edge within the industry, leveraging the Hertz brand in gaining customer access, especially with multinational corporations. The ratings also take into account high to medium business risk profile given sensitivity to macroeconomic conditions. In addition, vehicle supply-demand dynamics and volatile interest rate environment also exposes the Company to greater residual value risk. However, recent increases in automobile prices and tightening of auto finance conditions provides opportunity for rental car business to grow in the future. While on a timeline basis, revenues depict a decline on account of the impact of COVID and the subsequent phasing out of low margin telecom sector rentals, Company expects strong growth for long term car lease rentals from multinational and large corporates.

Ratings also take into account sound cash flow coverage indicators, which are expected to remain strong over the rating horizon. Liquidity indicators are adequate, albeit extended payables are a constraint. Ratings remain sensitive to maintenance of low financial risk profile. Given the projected increase in portfolio, maintaining gearing and leverage levels within reasonable ranges over the rating horizon will be important for ratings. Ratings reflect appropriate corporate governance infrastructure for its status as a public unlisted company concern with professional management and adequate disclosure levels.

For further information on this rating announcement, please contact Mr. Saeb Jafri (Ext: 217) or the undersigned (Ext: 207) at 021-35311861-71 or email at

Sara Ahmed

VIS Entity Rating Criteria Methodology – Industrial Corporates (May 2023)
VIS Issue/Issuer Rating Scale:

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .